Financial Accounting

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Equity Method and Unrealized Holding Gain or Loss


OfficeFurniture Co. purchased 35% of OfficeSupplies' outstanding voting shares for \$2,000,000 on November 1, 2015 to get involved in OfficeSupplies' operations. At the end of 2015, the market value of this investment was \$2,500,000 and OfficeSupplies had a net income of \$200,000 for 2015.

What was the total effect of this investment on OfficeFurniture's income statement for 2015 (in \$ amount)?