On January 3, 2018, Matteson Corporation acquired 40 percent of the outstanding common stock of OToole Company for $1,246,000. This acquisition gave Matteson the ability to exercise significant influence over the investee. The book value of the acquired shares was $904,000. Any excess cost over the underlying book value was assigned to a copyright that was undervalued on its balance sheet. This copyright has a remaining useful life of 10 years. For the year ended December 31, 2018, OToole reported net income of $291,000 and declared cash dividends of $45,000. At December 31, 2018, what should Matteson report as its investment in OToole under the equity method?

On January 1, 2018, Fisher Corporation paid $2,548,000 for 31 percent of the outstanding voting stock of Steel, Inc., and appropriately applies the equity method for its investment. Any excess of cost over Steel's book value was attributed to goodwill. During 2018, Steel reports $680,000 in net income and a $1,027,000 other comprehensive income loss. Steel also declares and pays $21,000 in dividends.

1. What amount should Fisher report as its Investment in Steel on its December 31, 2018, balance sheet?

2. What amount should Fisher report as Equity in Earnings of Steel on its 2018 income statement?