On january 1, 2017, alison inc paid $81200 for a 40% interest in Holister Corporation's common stock. This investee had assets with a book value of $219,000 and liabilities of $80,500. A patent held by Holister having a $7,400 book value was actually work 55,400. This patent had a six-year remaining life. any further excess cost associated with this acquisition was attributed to goodwill. During 2017, Holister earned income of $54,200 and declared and paid dividends of $18,000. In 2018, It had income of $66,700 and dividends of $23,000. During 2018 the fair value of Allisons investment in Holister had risen from $95,480 to $98,960.

1. Assuming Alison uses the equity method, what balance should appear in the Investment in Holister account as of December 31, 21018 2. Assuming Alison uses fair-value accounting, what income from the investment in Holister should be reported for 2018.