1. On January 1, 2020, Alison, Inc., paid $60,000 for a 40 percent interest in Holister Corporation’s common stock. This investee had assets with a book value of $200,000 and liabilities of $75,000. A patent held by Holister having a $5,000 book value was actually worth $20,000. 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 $30,000 and declared and paid dividends of $10,000. In 2021, it had income of $50,000 and dividends of $15,000. During 2021, the fair value of Allison’s investment in Holister had risen from $68,000 to $75,000.

2. Assuming Alison uses the equity method, what balance should appear in the Investment in Holister account as of December 31, 2021?

	16	(Investment account after 2 years with fair value option included)
	a.	Acquisition price
		Book value-assets minus liabilities ($125,000 x 40%)	50,000
		Excess payment
		Value of patent in excess of book value ($15,000 x 40%)	6,000
		Goodwill
		Amortization:
		Patent ($6,000 ÷ 6)	1,000
		Goodwill	4,000
		Annual amortization
		Acquisition price
		Basic equity accrual 2020 ($30,000 × 40%)	12,000
		Dividends—2020 ($10,000 × 40%)
		Amortization—2020 (above)
		Investment in Holister, 12/31/20
		Basic equity accrual —2021 ($50,000 × 40%)	20,000
		Dividends—2021
		Amortization—2021 (above)
		Investment in Holister, 12/31/21	$80,000

I have filled in some but am not sure if I need to do all of them or how and not sure what I have is correct or not. I started with an excel sheet all answers on right were blank everything on left was there from the teacher.