Prime Company holds 60 percent of Suspect Companys stock, acquired on January 1, 20X2, for $150,000. On the date of acquisition, Suspect reported retained earnings of $58,000 and $130,000 of common stock outstanding, and the fair value of the noncontrolling interest was $100,000. Prime uses the fully adjusted equity method in accounting for its investment in Suspect. Trial balance data for the two companies on December 31, 20X7, are as follows:

	Prime Company									Suspect Company
Item	Debit				Credit					Debit				Credit
Cash and Accounts Receivable		$	153,000								$	56,000
Inventory			244,000									104,000
Land			104,000									75,000
Buildings and Equipment			450,000									162,000
Investment in Suspect Co.			182,700
Cost of Goods Sold			158,000									90,000
Depreciation and Amortization Expense			28,000									20,000
Other Expenses			22,000									11,000
Dividends Declared			56,000									39,000
Accumulated Depreciation						$	178,500								$	47,000
Accounts Payable							50,000									23,000
Bonds Payable							190,000									44,000
Common Stock							280,000									130,000
Retained Earnings							401,000									148,000
Sales							270,000									165,000
Income from Suspect Co.							28,200
Total		$	1,397,700			$	1,397,700				$	557,000			$	557,000

Additional Information

1. At the date of combination, the book values and fair values of Suspects separately identifiable assets and liabilities were equal. The full amount of the increased value of the entity was attributed to goodwill. At December 31, 20X6, the management of Prime reviewed the amount attributed to goodwill as a result of its purchase of Suspect stock and recognized an impairment loss of $15,000. No further impairment occurred in 20X7.
2. On January 1, 20X5, Suspect sold land for $17,000 that had cost $6,500 to Prime.
3. On January 1, 20X6, Prime sold to Suspect equipment that it had purchased for $67,200 on January 1, 20X1. The equipment has a total 12-year economic life and was sold to Suspect for $51,800. Both companies use straight-line depreciation.
4. Intercompany receivables and payables total $6,000 on December 31, 20X7.

Required: a. Prepare a reconciliation between the balance in Primes Investment in Suspect Co. account reported on December 31, 20X7, and Suspects book value. (Enter the proportion of stock held as a fraction (i.e., 0.75), not in percent.)