Analyzing and Interpreting Equity Method Investments (FSET) Stober Company purchases an investment in Lang Company at a purchase price of $3,750,000 cash, representing 30% of the outstanding stock and book value of Lang. During the year, Lang reports net income of $375,000 and pays cash dividends of $150,000. At the end of the year, the fair value of Stobers investment is $4,500,000.

a. At what amount is the investment reported on Stobers balance sheet at year-end?

b. What amount of income from investments does Stober report?

c. Record each of the transactions and events from above in the financial statement effects template.

Note: Use a negative sign with your answer, when appropriate.

FSET should include a Balance sheet (Cash assets, noncash assets, liabilities, earned capital) and Income statement (revenues, expenses, net income). Fill in all that apply.