Problem 1-16 (Algo) (LO 1-4, 1-5, 1-8) On January 1, 2020, Alison, Inc., paid $70,800 for a 40 percent interest in Holister Corporation's common stock. This investee had assets with a book value of $235,000 and liabilities of $95,000. A patent held by Holister having a $8,900 book value was actually worth $25,400. 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 $45,700 and declared and paid dividends of $15,000. In 2021, it had income of $53,700 and dividends of $20,000. During 2021, the fair value of Allison's investment in Holister had risen from $84,080 to $88,960. 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. b. Investment in Holister Investment income