Assume that Smith Company paid $300,000 in cash to acquire 3,000 of the 10,000 outstanding shares of Jhon Company on October 1. Assume the book value and fair value of Jhons assets and liabilities are equal.

Dividends of $40,000 are paid on November 1. Jhons net income for the fiscal year ending December 31 is $80,000

What is the investment in Jhon balance after recording dividends and the share of Jhon's income: