What should matteson report as its investment in otoole

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Point 1: On January 3, 2018, Matteson Corporation acquired 30 percent of the outstanding common stock of O'Toole Company for $1,449,000. This acquisition gave Matteson the ability to exercise significant influence over the investee. The book value of the acquired shares was $823,000. 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.

Question 1: For the year ended December 31, 2018, O'Toole reported net income of $334,000 and declared cash dividends of $30,000. At December 31, 2018, what should Matteson report as its investment in O'Toole under the equity method?

Reference no: EM132483056

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