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Amber Co., a calendar-year entity, used the equity method to acquire a 35% stake in The Deep Co. On the year-end balance sheet, the investment
Amber Co., a calendar-year entity, used the equity method to acquire a 35% stake in The Deep Co. On the year-end balance sheet, the investment account showed a balance of $405,000. The Deep Co. reported a net income of $400,000 for the year and paid dividends of $79,000. How much did Amber Co. initially pay to acquire its investment in The Deep Co.?
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