Exercise 4-8 On May 1, 2015, Peters Company purchased 80% of the common stock of Smith Company for $45,400. Additional data concerning these two companies for the years 2015 and 2016 are: 2015 2016 Peters SmithPeters Smith Common stock Other 00 10,900 41,200 10,900 Retained earnings, 1/1 Net income (loss) Cash dividends (11/30)14,600 2,200 5,100 $94,800 $19,100 $94,800 $19,100 contributed capital 41,2 86,500 10,800 137,800 53,000 65,900 44,400 40,500 (4,600) 0 Any difference between book value and the value implied by the purchase price relates to Smith Company's land. Peters Company uses the cost method to record its investment