Check my On January 1, 2020, Alison, Inc., paid $73,500 for a 40 percent interest in Holister Corporation's common stock. This investee had assets with a book value of $234,500 and liabilities of $101,500. A patent held by Holister having a $5,500 book value was actually worth $37,000. This patent had a six-year remaining life. Any further excess cost associated with this acquisition was attributed to goodwill. During 2020, Holister earned income of $49,000 and declared and paid dividends of $16,000. In 2021, it had income of $73,500 and dividends of $21,000. During 2021, the fair value of Allison's investment in Holister had risen from $86,400 to $97,500. a. Assuming Alison uses the equity method, what balance should appear in the Investment in Holister account as of December 31, 2021? b. Assuming Alison uses fair-value accounting, what income from the investment in Holister should be reported for 2021? a. Investment in Holister b. Investment income