On January 1, 2021, Pine Corporation acquired a 30% interest in Maple, Inc. for $425,000, which was equal to book value of Maples net assets. During 2021, Maple reported net income of $205,000 and paid total dividends of $47,000.

Required:

a. How much 2021 income should Pine report from its equity method investment in Maple?

b. What amount should Pine report as Equity Investment on its December 31, 2021 balance sheet?

c. What circumstances would require that Pine discontinue the equity method.