Question #$2$

On January $1,2023,$ Bertrand, Incorporated, paid $$120,000$ for a $40$ percent interest in Chestnut

Corporation's common stock. Any excess cost associated with this acquisition was attributed to

goodwill. During $2023,$ Chestnut earned an income of $$50,000$ and declared and paid dividends of

$$15,000.$ In $2024,$ it had income of $$56,000$ and dividends of $$20,000.$

Required:

a$.$ Assuming Bertrand uses the equity method, what balance should appear in the Investment

in Chestnut account as of December $31,2024?$