Required information

$[$The following information applies to the questions displayed below.$]$

As a long$-$term investment, Fair Company purchased $20\%$ of Midlin Company's $150,000$ shares

for $$180,000$ at the beginning of the reporting year of both companies. During the year, Midlin

earned net income of $$120,000$ and distributed cash dividends of $$0\mathrm{.}30$ per share. At year$-$end,

the fair value of the shares is $$187,500.$

Required:

Assume no significant influence was acquired. How will the investment in Midlin Company be reflected in the

balance sheet and income statement of Fair Company at year$-$end?

Answer is complete but not entirely correct.$[$The following information applies to the questions displayed below.$]$

As a long$-$term investment, Fair Company purchased $20\%$ of Midlin Company$$s $150,000$ shares for $$180,000$ at the beginning of the reporting year of both companies. During the year, Midlin earned net income of $$120,000$ and distributed cash dividends of $$0\mathrm{.}30$ per share. At year$-$end, the fair value of the shares is $$187,500.$