41. On January 1, 2014, Allan Company bought a 15 percent interest in Sysinger Companu acquisition price of $184,500 reflected an assessment that all of Sysinger's accounts valued within the company's accounting records. During 2014, Sysinger reported net S100,000 and declared cash dividends of S30,000. Allan possessed the ability to influence s cantly Sysinger's operations and, therefore, accounted for this investment using the equit ere fa of signifi- od pro- On January 1, 2015, Allan acquired an additional 80 percent interest in Sysinger and $1,400,000 262,500 87,500 $1,750,000 vided the following fair-value assessments of Sysinger's ownership components: Consideration transferred by Allan for 80% interest Fair value of Allan's 15% previous ownership . . . . . . . . . . . . . . Noncontrolling interest's 5% fair value Total acquisition-date fair value for Sysinger Company.. Also, as of January 1, 2015, Allan assessed a S400,000 value to an unrecorded cust con- ct recently negotiated by Sysinger. The customer contract is anticipated to have a re life of 4 years. Sysinger's other assets and liabilities were judged to have fair values equal to their book values. Allan elects to continue applying the equity method to this investment for At December 31, 2015, the following financial information is available for consolidation: Sysinger internal reporting purposes. Allan Company Company Revenues Operating expenses . Equity earnings of Sysinger . Gain on revaluation of Investment in Sysinger to fair value $ (931,000) (380,000) 230,000 615,000 (47,500) (67,500) 431,000 150,000 Net income continue