On January 1, 2021, American Corporation purchased 25% of the outstanding voting shares of Short Supplies common stock for $232,500 cash. On that date, Short's book value and fair value were both $930,000. The equity method is deemed appropriate for this investment. Short's net income reported on December 31, 2021, was $89,000. During 2021, Short also paid cash dividends in the amount of $28,500.

Required:

Compute the amount that would be reported for the investment on American Corporation's financial statements at December 31, 2021.

Gates Company issued a 4-year, $800,000 note at 6% fixed interest, interest payable every six months on January 2, 2020.Gates wants to change the note to a variable rate note. As a result, on the same date, Gates signed a contract with Burke Derivative Emporium for an interest rate swap where Gates agrees to receive 6% fixed and pay LIBOR of 5.6% for the first 6 months on $800,000. At each 6-month period, the variable interest rate will be reset. The variable rate is reset to 6.6% on June 30, 2020.What is the net interest payment or receipt that Gates will make (receive) on June 30, 2020?

Assume that, on January 1, 2021, Matsui Co. paid $480,000 for its investment in 30,000 shares of Yankee Inc. Further, assume that Yankee has 150,000 total shares of stock issued. The book value and fair value of Yankee's identifiable net assets were both $300,000 at January 1, 2021. The following information pertains to Yankee during 2021:

Net income$150,000Dividends declared and paid$45,000Market price of common stock on 12/31/2021$18/share

What amount would Matsui report in its year-end 2021 balance sheet for its investment in Yankee?