On January 1, 2021, Fisher Corporation paid $2,559,000 for 31 percent of the outstanding voting stock of Steel, Inc., and appropriately applied the equity method for its investment. Any excess of cost over Steel's book value was attributed to goodwill. During 2021, Steel reports $775,000 in net income and a $1,020,000 other comprehensive income loss. Steel also declares and pays $23,000 in dividends. a. What amount should Fisher report as its Investment in Steel on its December 31, 2021, balance sheet? b. What amount should Fisher report as Equity in Earnings of Steel on its 2021 income statement? a. Investment b. Equity in earnings On January 1, 2020, Alison, Inc., paid $89,000 for a 40 percent interest in Holister Corporation's common stock. This investee had assets with a book value of $254,000 and liabilities of $92,500. A patent held by Holister having a $8,600 book value was actually worth $43,100. 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 $41,500 and declared and paid dividends of $14,000. In 2021, it had income of $70,700 and dividends of $19,000. During 2021, the fair value of Allison's investment in Holister had risen from $100,700 to $109,780. a. Assuming Alison uses the equity method, what balance should appear in the Investment in Holister account as of December 31, 2021? b. Assuming Alison uses fair-value accounting, what income from the investment in Holister should be reported for 2021? a. Investment in Holister b. Investment income Matthew, Inc., owns 30 percent of the outstanding stock of Lindman Company and has the ability to significantly influence the investee's operations and decision making. On January 1, 2021, the balance in the Investment in Lindman account is $353,000. Amortization of excess fair value associated with the 30% ownership is $15,900 per year. In 2021, Lindman earns an income of $213,000 and declares cash dividends of $71,000. Previously, in 2020, Lindman had sold inventory costing $49,000 to Matthew for $70,000. Matthew consumed all but 20 percent of this merchandise during 2020 and used the rest during 2021. Lindman sold additional inventory costing $56,100 to Matthew for $85,000 in 2021. Matthew did not consume 40 percent of these 2021 purchases from Lindman until 2022. a. What amount of equity method income would Matthew recognize in 2021 from its ownership interest in Lindman? b. What is the equity method balance in the Investment in Lindman account at the end of 2021? a. Equity income b. Balance of investment in Lindman account