On February 1, 20X5, Peter Co. purchased 20% of the outstanding shares of Mary Inc. at a cost of $275,000. During the next two fiscal years, Mary Inc. reported the following:
$\begin{array}{|r|r|r|}
\hline& \text { Net income } & \text { Dividends } \
\hline \text { January } 31,20 \times 6 & \$ 42,000 & \$ 20,000 \
\hline \text { January } 31,20 \times 7 & \$ 35,000 & \$ 15,000\\hline
\end{array}$ The fair value of the investment in Mary shares was $310,000 and $260,000, on January 31, 20X6 and 20X7, respectively.
Required:

Question

On February 1, 20X5, Peter Co. purchased 20% of the outstanding shares of Mary Inc. at a cost of $275,000. During the next two fiscal years, Mary Inc. reported the following:
 $\begin{array}{|r|r|r|} 
\hline& \text { Net income } & \text { Dividends } \
\hline \text { January } 31,20 \times 6 & \$ 42,000 & \$ 20,000 \
\hline \text { January } 31,20 \times 7 & \$ 35,000 & \$ 15,000\\hline
\end{array}$ The fair value of the investment in Mary shares was $310,000 and $260,000, on January 31, 20X6 and 20X7, respectively.
Required:

Quizplus · Accepted Answer

The Answer of On February 1, 20X5, Peter Co. purchased 20% of the outstanding shares of Mary Inc. at a cost of $275,000. During the next two fiscal years, Mary Inc. reported the following:
 $\begin{array}{|r|r|r|} 
\hline& \text { Net income } & \text { Dividends } \
\hline \text { January } 31,20 \times 6 & \$ 42,000 & \$ 20,000 \
\hline \text { January } 31,20 \times 7 & \$ 35,000 & \$ 15,000\\hline
\end{array}$ The fair value of the investment in Mary shares was $310,000 and $260,000, on January 31, 20X6 and 20X7, respectively.
Required:

On February 1, 20X5, Peter Co The Fair Value of the Investment in Mary Shares Was