1 2 Williams Company bought 30 percent ownership in Smith Box Company on January 1, 20X1, at underlying book value. During the period of January 1, 20X1, through December 31, 20X3, the market value of Williams' investment in Smith' stock increased by $1,500 each year. In 20X1, 20X2, and 20X3, Smith Box reported the following: 3 4 5 6 7 Year 8 20X1 9 20X2 10 20X3 11 Net Income Dividends 8000 15000 12000 10000 20000 10000 12 The balance in Williams Company's investment account on December 31, 20X3, was $71,000. 13 14 Required: 15 In each of the following independent cases, determine the amount that Williams paid for its investment in Smith Box stock assuming that Williams accounted for its 16 investment by carrying the investment at fair value, or using the equity method. 17 18 Note: Use cells A2 to A12 from the given information to complete this question. 19 20 Fair Value 21 Equity Method 22 23 Fair Value Method 24 Investment in Smith Company 20X3 25 Less: 20X1 Market value increase 26 20X2 Market value increase 27 20X3 Market value Increase 28 Fair value at acquisition