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On January 1, Hershey Company, a calendar-year entity, purchased 72,000 shares of Mars Companys 240,000 outstanding voting shares of common stock for $900,000. The fair
On January 1, Hershey Company, a calendar-year entity, purchased 72,000 shares of Mars Companys 240,000 outstanding voting shares of common stock for $900,000. The fair value and the carrying amount of Mars net assets equaled $3 million on that date. Mars reported $630,000 of net income for the year and paid $240,000 of dividends on December 28. If Hershey did not elect the fair value option, what is the change in the investment balance during the year?
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