Problem $1-13($Algo$)($LO $1-4,1-5)$

On January $3,2021,$ Matteson Corporation acquired $30$ percent of the outstanding common stock of O'Toole Company for $$1,335,000.$

This acquisition gave Matteson the ability to exercise significant influence over the investee. The book value of the acquired shares

was $$873,000.$ Any excess cost over the underlying book value was assigned to a copyright that was undervalued on its balance

sheet. This copyright has a remaining useful life of $10$ years. For the year ended December $31,2021,$ O'Toole reported net income of

$$324,000$ and declared cash dividends of $$35,000.$ On December $31,2021,$ what should Matteson report as its investment in O'Toole

under the equity method?On January $3,2021,$ Matteson Corporation acquired $30$ percent of the outstanding common stock of O$$Toole Company for $$1,335,000.$ This acquisition gave Matteson the ability to exercise significant influence over the investee. The book value of the acquired shares was $$873,000.$ Any excess cost over the underlying book value was assigned to a copyright that was undervalued on its balance sheet. This copyright has a remaining useful life of $10$ years. For the year ended December $31,2021,$ O$$Toole reported net income of $$324,000$ and declared cash dividends of $$35,000.$ On December $31,2021,$ what should Matteson report as its investment in O$$Toole under the equity method?