Ed has a summer beach cottage that he has owned for many years. the cottage is valued at $ 75 comma 000. this year, ed spends $400 on paint and $550 on trees, and then paints the exterior of the cottage and plants the trees himself. if he had hired a professional painter, it would have cost $1 comma 000 to paint the cottage (not including the cost of paint), and if he had hired a professional landscaper, it would have cost $450 (not including the cost of the trees) to do the planting.

Grant, inc., acquired 30% of south co.’s voting stock for $200,000 on january 2, year 1, and did not elect the fair value option. the price equaled the carrying amount and the fair value of the interest purchased in south’s net assets. grant’s 30% interest in south gave grant the ability to exercise significant influence over south’s operating and financial policies. during year 1, south earned $80,000 and paid dividends of $50,000. south reported earnings of $100,000 for the 6 months ended june 30, year 2, and $200,000 for the year ended december 31, year 2. on july 1, year 2, grant sold half of its stock in south for $150,000 cash. south paid dividends of $60,000 on october 1, year 2. before income taxes, what amount should grant include in its year 1 income statement as a result of the investment?