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Pillar Steel Co., which began operations on January 4, 2011, had the following subsequent transactions and events in its long term investments. |
| 2011 | ||
| Jan. | 5 | Pillar purchased 30,000 shares (20% of total) of Kildaire’s common stock for $780,000. |
| Oct. | 23 | Kildaire declared and paid a cash dividend of $1.60 per share. |
| Dec. | 31 |
Kildaire’s net income for 2011 is $582,000, and the fair value of its stock at December 31 is $27.75 per share. |
| 2012 |
| Oct. | 15 | Kildaire declared and paid a cash dividend of $1.30 per share. |
| Dec. | 31 |
Kildaire’s net income for 2012 is $738,000, and the fair value of its stock at December 31 is $30.45 per share. |
| 2013 | ||
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Jan. 2 Pillar sold all of its investment in Kildaire for $947,000 cash. Question: Compute the net increase or decrease in Pillar’s equity from January 5, 2011, through January 2, 2013, resulting from its investment in Kildaire. |
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