On January 1, 2021, Alison Company bought a 15 percent interest in Simmons Company. The acquisition price of $187,500 reflected an assessment that all of Simmons's accounts were fairly valued within the company's accounting records. During 2021, Simmons reported net income of $101,600 and declared cash dividends of $30,500. Alison possessed the ability to significantly influence Simmons's operations and, therefore, accounted for this investment using the equity method. On January 1, 2022, Alison acquired an additional 80 percent interest in Simmons for $1,403,200. The price paid for the 80 percent acquisition was proportionate to Simmons's total fair value. On that date, the book value of Simmons's assets and liabilities approximated their fair value except an unrecorded customer contract of $401,000 with four years of remaining life. To record the January 1, 2022 acquisition of an additional 80 percent ownership of Simmons Company shares, Alison should credit Gain on Revaluation of Simmons at: O $64,935 $75,600 $18,720 $0

MCHE On January 1, 2021. Alison Company bought a 15 percent interest in Simmons Company. The acquisition price of $187.500 reflected in that all of Simmons account were taily valued with the company's accounting records During 2021, Simmons reported net income of S101.600 and declared and dividends of $30.500. Alen possessed the ability to significantly ince Simons operations and therefore, accounted for this investment using the equity method On January 1, 2022. Alison acquired an additional 80 percent interest in Simmons for $1,403,200. The price paid for the percent acquisitio was proportionate to Si total value. On that date the book value of Simon's assets and liabilities approximated their finale exceplan unrecorded customer contract of 101.000 with four years of reine To record the January 1 2022 acquisition of an additiona 80 percent ownership of Simmons Company shares, Alison should credit Gain on Revaluation of Simmons at 564,935 $75,600 $18,720 30