date Tweediffere retained earnings amounted to $10,000, and the acquisition differential was entirely allocated to goodwill. Impairment tests conducted yearly since acquisition yielded a loss of $3,000 in 2012 and a further loss of $2,250 in 2015. Raleigh uses the cost method to account for the investment. Use the entity theory for calculations. 2. The December 31, 2015 inventory of Raleigh contained purchases made from Tweedmere amounting to $10,000. Tweedmere sells to Raleigh at a 40% gross profit. 3. On July 1, 2015 Raleigh borrowed $60,000 from Tweedmere and signed a note bearing interest at 12% per year. 4. Both companies pay income tax at a rate of 40%. REQUIRED: Calculate the balance in the "Investment in Tweedmere" account as at December 31, 2015, if Raleigh had used the equity method