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On January 1, 2021, Cephalopod Bank purchased a 23% stake in Can't Even Inc. for $2,500. At? acquisition, Can't Even's market value equaled the book value of its net assets. On December 31, 2021, Can't Even reported net income of $493 and paid $74 in dividends. Problem 1: At what carrying value did Cephalopod Bank mark its investment in Can't Even at the end of 2021.
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