Sheet Company reported the following net income and dividends for the years indicated: Year 20X5 20X6...

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Sheet Company reported the following net income and dividends for the years indicated: Year 20X5 20X6 20X7 Net Income $35,000 45,000 30,000 Dividends $12,000 20,000 14,000 Pillow Corporation acquired 75 percent of Sheet's common stock on January 1, 20X5. On that date, the fair value of Sheet's net assets was equal to the book value. Pillow uses the equity method in accounting for its ownership in Sheet and reported a balance of $259,800 in its investment account on December 31, 20X7 Required: a. What amount did Pillow pay when it purchased Sheet's shares? Purchase amount b. What was the fair value of Sheet's net assets on January 1, 20X5? Fair value Sheet Company reported the following net income and dividends for the years indicated: Year 20X5 20X6 20X7 Net Income $35,000 45,000 30,000 Dividends $12,000 20,000 14,000 Pillow Corporation acquired 75 percent of Sheet's common stock on January 1, 20X5. On that date, the fair value of Sheet's net assets was equal to the book value. Pillow uses the equity method in accounting for its ownership in Sheet and reported a balance of $259,800 in its investment account on December 31, 20X7 Required: a. What amount did Pillow pay when it purchased Sheet's shares? Purchase amount b. What was the fair value of Sheet's net assets on January 1, 20X5? Fair value