On May 1, 2015, Peters Company purchased 80% of the common stock of Smith Company for $50,200. Additional data concerning these two companies for the years 2015 and 2016 are: 2015 2016 Peters Smith Peters Smith Common stock $107,100 $23,200 $107,100 $23,200 Other contributed capital 40,700 9,000 40,700 9,000 Retained earnings, 1/1 82,600 10,300 129,300 54,400 Net income (loss) 63,000 45,900 35,900 (4,500 ) Cash dividends (11/30) 16,300 1,800 4,500 Any difference between book value and the value implied by the purchase price relates to Smith Company's land. Peters Company uses the cost method to record its investment.