On January 1, 2014, Alison, Inc., paid $90,000 for a 40 percent interest in Holister Corporations common stock. This investee had assets with a book value of $247,000 and liabilities of $94,500. A patent held by Holister having a $6,000 book value was actually worth $52,500. This patent had a six-year remaining life. Any further excess cost associated with this acquisition was attributed to goodwill. During 2014, Holister earned income of $46,500 and declared and paid dividends of $16,000. In 2015, it had income of $57,200 and dividends of $21,000. During 2015, the fair value of Allisons investment in Holister had risen from $102,400 to $104,480.

a.	Assuming Alison uses the equity method, what balance should appear in the Investment in Holister account as of December 31, 2015?

investment in holster:

b.	Assuming Alison uses fair-value accounting, what income from the investment in Holister should be reported for 2015?

investment income: