Remeasured financial statements and sophisticated equity method. Champos Corporation is...

Remeasured financial statements and sophisticated equity method. Champos Corporation is a foreign corporation that was formed on June 30, 2015. On July 1, 2016,Magnum Ventures, a U.S. venture capital firm, paid $700,000 to acquire a 30%interest in the equity of Champos. At the time of the acquisition, Champos had net assets as follows:

Campos employs the FIFO inventory method, and inventory layers during the second half of 2016 consisted of the following: 150,000 FC, 220,000 FC, and 210,000 FC, acquired during the second through fourth quarters of 2016, respectively. All depreciable assets were acquired on June 30, 2015. Of the excess over book value paid by Magnum Ventures, $54,000 is to be allocated to depreciable assets with a remaining useful life of nine years, and the balance is traceable to goodwill.

Determine the amount thatMagnum Ventures should report for its investment in Champos Corporation as of December 31, 2016, under the sophisticated equity method.