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On January 1, 2023, Bertrand, Incorporated, paid $90,400 for a 40 percent interest in Chestnut Corporation's common stock. This investee had assets with a

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On January 1, 2023, Bertrand, Incorporated, paid $90,400 for a 40 percent interest in Chestnut Corporation's common stock. This investee had assets with a book value of $248,500 and liabilities of $93,500. A patent held by Chestnut having a $12,300 book value was actually worth $55,800. This patent had a six-year remaining life. Any further excess cost associated with this acquisition was attributed to an indefinite-lived asset. During 2023, Chestnut earned income of $52,500 and declared and paid dividends of $18,000. In 2024, it had income of $56,000 and dividends of $23,000. During 2024, the fair value of Bertrand's investment in Chestnut had risen from $102,300 to $107,100. Required: a. Assuming Bertrand uses the equity method, what balance should appear in the Investment in Chestnut account as of December 31, 2024? b. Assuming Bertrand uses fair-value accounting, what income from the investment in Chestnut should be reported for 2024? a. Investment in Chestnut account as per the equity method b. Income from the investment in Chestnut as per fair-value accounting

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