Essex Company issued common shares with a par value of \(\$ 50,000\) and a market value of \(\$ 165,000\) in exchange for 30 percent ownership of Tolliver Corporation on January 1, 20X2. Tolliver reported the following balances on that date:

The estimated economic life of the patents held by Tolliver is 10 years. The buildings and equipment are expected to last 12 more years on average. Tolliver Corporation paid dividends of \(\$ 9,000\) during \(20 \times 2\) and reported net income of \(\$ 80,000\) for the year.
\section*{Required}
Compute the amount of investment income (loss) reported by Essex from its investment in Tolliver Corporation for 20X2 and the balance in the investment account on December 31, 20X2, assuming the equity method is used in accounting for the investment.

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TOLLIVER CORPORATION Balance Sheet January 1, 20X2 Book Value Fair Value Assets Cash Accounts Receivable $ 40.000 80.000 $ 40,000 80,000 Inventory (FIFO basis) 120.000 150.000 Land 50.000 65.000 Buildings and Equipment 500,000 Less: Accumulated 320,000 Depreciation (240.000) Patent 25.000 Total Assets $550.000 Liabilities and Equities Accounts Payable Bonds Payable Common Stock Additional Paid-In Capital $ 30,000 $ 30,000 100.000 100.000 150,000 20,000 Retained Earnings 250,000 Total Liabilities and Equities $550.000