Problem 5 Plantation Enterprises paid $3,000,000 for an 80% interest in Shelby Corporation's outstanding voting common stock on May 1, 2020. The book values and fair values of Shelby's assets and liabilities on May 1, along with amortization data are as follows: Book Value Fair Value Cash Accounts Receivable, net Inventories (Sold in June 2020) Other current assets Land Buildings, net (15 Yr Remaining Life) Equipment, net (9 yr remaining life) 300,000 680,000 770,000 150,000 650,000 1,415,000 675,000 300,000 680,000 890,000 150,000 900,000 1,730,000 788,000 900,000 150,000 1,000,000 Accounts Payable Other Current Liabilities Bonds Payable Capital Stock Paid in Capital Retained Earnings 900,000 150,000 1,000,000 500,000 1,050,000 1,040,000 Shelby Corporation reported net income of $ 912,000 for 2020 and paid dividends of $85,000 in April, 2020 and $105,000 in October, 2020. REQUIRED: 1. Calculate Plantation's investment income from Shelby for 2020 (Equity Basis) 2. Determine the balance of Plantation's investment in Shelby at 12/31/20 assuming equity basis