] (note: This Problem based on exercise E2-5): Kajais Company acquired a 30 percent interest in Maui on January 1 for $2,400,000 cash. Assume the cost of the investment equals the fair value of Mauis net assets. Kajais assigned the $600,000 fair value over book value of the interest acquired to the following assets

Investment Cost	$2,400,000
Ownership Interest	30%
Excess of Fair Value over BV Assigned to:
Inventories	$120,000	Sold in current year
Building	$240,000	4 year remaining life
Goodwill	$240,000
Total FV over BV	$600,000

During the year Maui reported net income and dividends as follows:

Net Income	$960,000
Dividends	$240,000

REQUIRED

a. Determine Kajaiss income from Maui.

b. Determine the December 31 balance of the Investment in Maui account.