Investment Value
Port Company purchased 30,000 of the 100,000 outstanding shares of Sund Company common stock on January 1, 20X2, for $180,000. The purchase price was equal to the book value of the shares purchased. Sund reported net income of $40,000, $30,000, and $5,000 for 20X2, 20X3, and 20X4, respectively. It paid a dividend of $25,000 in 20X2, but paid no dividends in 20X3 and 20X4.
Required
Compute the amounts Port Company should report as the carrying values of its investment in Sund Company at December 31, 20X2, 20X3, and 20X4.
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