On January 1, 2007, Sloane Co. purchased 25% of Orr Corp.'s common stock; no goodwill resulted from the purchase. Sloane appropriately carries this investment at equity and the balance in Sloane's investment account was $720,000 at December 31, 2007. Orr reported net income of $450,000 for the year ended December 31, 2007, and paid common stock dividends totaling $180,000 during 2007.