Assume that Fireside Inc. purchased \(30 \%\) of the common stock of Theater Supplies Corporation on January 1, 2020 , for \(\$ 100,000\). Fireside Inc. elected to account for its investment using the fair value option. During the year, Fireside Inc. reported net income of \(\$ 80,000\) and declared and paid dividends of \(\$ 15,000\). The fair value of Fireside's investment in Theater Supplies common stock is \(\$ 105,000\). Assume that Fireside Inc. has significant influence over Theater Supplies Corporation.

Required

a. What amount would Fireside Inc. report on its balance sheet on December 31, 2020, for its investment in Theater Supplies Corporation?

b. What amount would Fireside Inc. report in its income statement for the year ended December 31, 2020, for its investment in Theater Supplies Corporation?