On January 2, year 1, an entity purchased a 30% interest in Tod Co. for 250,000. On this date, Tod’s stockholders’ equity was 500,000. The carrying amounts of Tod’s identifiable net assets...

On January 2, year 1, an entity purchased a 30% interest in Tod Co. for 250,000. On this date, Tod’s stockholders’ equity was 500,000. The carrying amounts of Tod’s identifiable net assets approximated their fair values, except for land whose fair value exceeded its carrying amount by 200,000. Tod reported net income of 100,000 for year 1, and paid no dividends. The entity accounts for this investment using the equity method. In its December 31, year 1 balance sheet, what amount should the entity report as investment in subsidiary?