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2. On January 1 of Year 1, Taraz Company purchased 4,000 shares of the common stock of Company A for $240,000. At the time, Company A had a total of 10,000 common shares outstanding. Accordingly, Taraz purchased 40% of the outstanding shares of Company A. During Year 1, Company A paid cash dividends totaling $20,000. Company A also reported net income of $50,000 during Year 1. During Year 2, Company A paid no cash dividends. Company A reported a net loss of $40,000 during Year 2. On December 31 of Year 1, the market value of Company A’s common stock was $45 per share. On December 31 of Year 2, the market value of Company A’s common stock was $72 per share. On Taraz Company’s books, what amount should be reported as “Investment in Company A” as of December 31 of Year 2?
$272000
$243000
$260000
$236000
$257000
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