Scott Company purchased 30 percent of the ownership of Earnest Enterprises on January 1, 20X2, at underlying book value. In \(20 \mathrm{X} 2\) Earnest Enterprises reported net income of \(\$ 60,000\) and paid dividends of \(\$ 15,000\), and in \(20 \mathrm{X} 3\) reported a loss of \(\$ 40,000\) and paid dividends of \(\$ 35,000\). Scott Company uses the equity method in accounting for its investment in Earnest Enterprises and reports a balance in its investment account of \(\$ 135,000\) on December 31, 20X3.

\section*{Required}

Compute the amount paid by Scott Company to purchase the shares of Earnest Enterprises.