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McGinn Company purchased 10% of RJ Company's common stock during 2019 for $102,250. The 10% investment in RJ had a $97,500 fair value at the

McGinn Company purchased 10% of RJ Company's common stock during 2019 for $102,250. The 10% investment in RJ had a $97,500 fair value at the end of 2019 and a $105,750 fair value at the end of 2020. Which of the following statements is correct

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