Problem:
On January 2, 20X3, Kean Company purchased 30 percent interest in Pod Company for $250,000. On this date, Pod's stockholders' equity was $500,000. The carrying amounts of Pod's identifiable net assets approximated their fair values, except for equipment whose fair value exceeded its carrying amount by $200,000 and had an expected remaining useful life of 15 years at January 2, 20X3. Pod reported net income of $100,000 for 20X3, and paid no dividends. Kean accounts for this investment using the equity method. In its December 31, 20X3, balance sheet, what amount should Kean report as its investment in Pod?