P5-23 Complex Differential Essex Company issued common shares with a par value of $50,000 and a market value of $165,000 in exchange for 30 percent ownership of Tolliver Corporation on January 1, 20X2. Tolliver reported the following balances on that date: TOLLIVER CORPORATION Balance Sheet January 1, 20X2 Book Value Fair Value $ 40,000 80,000 120,000 50,000 500,000 (240,000) $ 40,000 80,000 150,000 65,000 320,000 Assets Cash Accounts Receivable Inventory (FIFO basis) Land Buildings & Equipment Less: Accumulated Depreciation Patent Total Assets Liabilities & Equities Accounts Payable Bonds Payable Common Stock Additional Paid-In Capital Retained Earnings Total Liabilities & Equities 25,000 $680,000 $550,000 $ 30,000 100,000 $ 30,000 100,000 150,000 20,000 250,000 $550,000 The estimated economic life of the patents held by Tolliver is 10 years. The buildings and equip- ment are expected to last 12 more years on average. Tolliver paid dividends of $9,000 during 20X2 and reported net income of $80,000 for the year. Required Compute the amount of investment income (loss) reported by Essex from its investment in Tolliver for 20X2 and the balance in the investment account on December 31, 20X2, assuming the equity method is used in accounting for the investment