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. Assuming Alison uses the equity method, what balance should appear in the Investment in Holister account as of December 31, 2021? This is Chapter 1 Problem 16a only Template for 16a Unit1 H 1.16 Template xlsx a. 16 (Investment account after 2 years with fair value option included) Acquisition price Book value-assets minus liabilities ($125,000 x 40%) Excess payment Value of patent in excess of book value ($15,000 x 40%) Goodwill 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Amortization: Patent ($6,000 + 6) Goodwill Annual amortization Acquisition price Basic equity accrual 2020 ($30,000 x 40%) Dividends-2020 ($10,000 x 40%) Amortization-2020 (above) Investment in Holister, 12/31/20 Basic equity accrual-2021 ($50,000 x 40%) Dividends ---2021 Amortization - 2021 (above) Investment in Hollster, 12/31/21 $80,000 Sheet1 She Shant