Mehan Incorporated- balance in the investment account at December 31, 2010( with explanation)

On January 1 2010, Mehan, Incorporated purchased an additional 25,000 sharers (25%) of cook for $300,000. This last purchase gave Mehan the ability to apply significant influence over cook. The book value of cook on january1, 2010, was $1,000,000. The book value of cook on January 1, 2011, was $1,150,000. Any excess of cost over book value for this second transaction is assigned to a database and amortized over five years.

Cook reports net income and dividends as follows. These amounts are assumed to have occurred evenly throughout the years:

Net income   Dividends

2010              $200,000       $50,000

2011               225,000          50,000

2012              250,000           60,000

On April 1 2012, just after its first dividend receipt, Mehan sells 10,000 shares of its investment. How much income did Mehan report from cook during 2010?

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