Problem 1-16 (Algo) (LO 1-4, 1-5, 1-8) On January 1, 2020, Alison, Inc. paid $77.000 for a 40 percent interest in Holister Corporation's common stock This investee had assets with a book value of $223,000 and liabilities of $94,500. A patent held by Holister having a $10.800 book value was actually worth $52,800. 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 $48.700 and declared and paid dividends of $16,000. In 2021, it had income of $74,500 and dividends of $21,000. Daning 2021. the fair value of Allison's investment in Holister had risen from $90,580 to $100.180. 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 Holster should be reported for 2021? Investment in Holister Investment income Problem 1-16 (Algo) (LO 1-4, 1-5, 1-8) On January 1, 2020, Alison, Inc. paid $77.000 for a 40 percent interest in Holister Corporation's common stock This investee had assets with a book value of $223,000 and liabilities of $94,500. A patent held by Holister having a $10.800 book value was actually worth $52,800. 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 $48.700 and declared and paid dividends of $16,000. In 2021, it had income of $74,500 and dividends of $21,000. Daning 2021. the fair value of Allison's investment in Holister had risen from $90,580 to $100.180. 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 Holster should be reported for 2021? Investment in Holister Investment income