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Analyzing and Interpreting Equity Method Investments Stober Company purchases an investment in Lang Company at a purchase price of $1.2 million cash, representing 30% of

Analyzing and Interpreting Equity Method Investments Stober Company purchases an investment in Lang Company at a purchase price of $1.2 million cash, representing 30% of the book value of Lang. During the year, Lang reports net income of $110,000 and pays cash dividends of $50,000. At the end of the year, the fair value of Stober's investment is $1.25 million. a. At what amount is the investment reported on Stober's balance sheet at year-end?

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

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