Mast Corporation acquires a 75% interest in the common stock of Shaw Company on January 1, 2014, for $462,500 cash. Shaw has the following balance sheet on that date:

Appraisals indicate that the book values for inventory, buildings and equipment, and patent are below fair values. The inventory has a fair value of $50,000 and is sold during 2014. The buildings and equipment have an appraised fair value of $300,000 and a remaining life of 20 years. The patent, which has a 10-year life, has an estimated fair value of $50,000. Any remaining excess is goodwill.
Shaw Company reports the following income earned and dividends paid during 2014 and 2015:

Prepare a determination and distribution of excess schedule (a value analysis is not needed) for the investment in Shaw Company and determine the balance in Investment in Shaw Company on Mast Corporation€™s books as of December 31, 2015, under the following methods that could be used by the parent, Mast Corporation: simple equity, sophisticated equity, and cost.

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Assets Liabilities and Equity .80,000 Current liabilities... Current assels. In1 ventory Land.. Buildings and equipment (net) Patent. 40,000 Common stock ($5 par) 100,000 Paid-in capital in excess of par 200,000 Retained earnings . 串50,000 50,000 150,000 200,000 30,000 $450,000 Toldl liabilities and equity Retained earnings, January 1, 2014. $200,000 Net income, 2014 Dividends paid in 2014. $70,000 120,000) 50,000 $250,000 Balance, December 31, 2014 $48,000 Net income, 2015 Dividends paid in 2015. 120,000 28,000 $278,000 Balance, Debe 31, 2015