Question: Required: On January 3 , 2 0 2 4 , Matteson Corporation acquired 3 0 percent of the outstanding common stock of O'Toole Company for

Required:

On January

3, 2024,

Matteson Corporation acquired

30

percent of the outstanding common stock of O'Toole Company for $

1, 267, 000 .

This acquisition gave Matteson the ability to exercise significant influence over the investee. The book value of the acquired shares was $

883, 000 .

Any excess cost over the underlying book value was assigned to a copyright that was undervalued on its balance sheet. This copyright has a remaining useful life of

10

years. For the year ended December

31, 2024,

O'Toole reported net income of $

323, 000

and declared cash dividends of $

55, 000 .

On December

31, 2024,

what should Matteson report as its investment in O'Toole under the equity method?

Investment

Required: On January 3,2024, Matteson Corporation acquired 30 percent of the

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