Equity Method On January 1, 2014, The Miller Corporation purchased 300,000 shares of The Mayfair Corporation for $5.7 million. The investment represented 25 percent of The Mayfair Corporation's outstanding common shares. During 2014, Mayfair reported net earnings of $2.25 million and paid a cash dividend of $0.15 per share. During 2015, Mayfair reported a net loss of $180,000 and again paid a dividend of $0.15 per share. Calculate the book value of Miller's investment in Mayfair as of December 31, 2014, and December 31, 2015. 2014 $ 2015 $ Hobbes Corporation's purchase of stock of Tiger Company gave Hobbes voting control over Tiger. A portion of the amount Hobbes paid reflects the fact that Tiger's inventories have a market value in excess of their book value. How should this portion of the cost be accounted for by Hobbes Corporation? Select one: O a. Reported as goodwill on the balance sheet of Hobbes Corporation b. Included in the carrying value of the investment until disposition of the stock C. Added to the inventory cost on Hobbes's consolidated balance sheet O d. Amortized against investment revenue over the remaining useful life of the investment