Change to Equity Method

On January 1, 2016, Lion Company paid $660,000 for 11,000 shares of Wolf Company's voting common stock, which was a 10% interest in Wolf. Lion does not have the ability to exercise significant influence over the operating and financial policies of Wolf. Lion received dividends of $1.00 per share from Wolf on October 2, 2016. Wolf reported net income of $450,000 for the year ended December 31, 2016, and the ending market price of its shares was $61.

On July 2, 2017, Lion paid $2,079,000 for 33,000 additional shares of Wolf's voting common stock, which represents a 30% investment in Wolf. The fair values of all of Wolf's assets, net of liabilities, were equal to their book values of $6,930,000. As a result of this transaction, Lion has the ability to exercise significant influence over the operating and financial policies of Wolf. Lion received dividends of $1.00 per share from Wolf on April 2, 2017,and $1.35 per share on October 1, 2017. Wolf reported net income of $550,000 for the year ended December 31, 2017, and $220,000 for the 6 months ended December 31, 2017.

For Lion, show the dividend income for 2016, as well as the December 31, 2016, unrealized holding gain or loss for the available-for-sale securities and carrying value of the investment account.

Dividend income for 2016 $ 11000

12/31/16 unrealized holding gain in value of available-for-sale securities $ 11000

12/31/16 carrying value of investment $ 671000

Assuming that Lion issues comparative financial statements for 2016 and 2017, show the investment income for 2016 and 2017, as well as the December 31, 2016 and 2017 carrying value of the investment account.

Investment income for 2016 $ 45000

Investment income for 2017 $ ??????????????

12/31/17 carrying value $ ????????????????????

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