What should matteson report as its investment in otoole

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Reference no: EM131881744

Problem

On January 3, 2015, Matteson Corporation acquired 30 percent of the outstanding common stock of O'Toole Company for $1,209,000. This acquisition gave Matteson the ability to exercise significant influence over the investee. The book value of the acquired shares was $840,000. 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, 2015, O'Toole reported net income of $308,000 and declared cash dividends of $40,000. At December 31, 2015, what should Matteson report as its investment in O'Toole under the equity method?

Reference no: EM131881744

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