Review of pre-consolidation equity method (controlling investment in affiliate, fair value differs from book value) Assume an investee has the following financial statement information for the three years ending December 31, 2013: (At December 31) Current assets Tangible fixed assets Intangible assets Total assets 2011 2012 2013 $103,500 $138,850 $142,735 281,500 287,150 330,865 25,000 22,500 20,000 $410,000 $448,500 $493,600 $50,000 $55,000 $60,500 110,000 121,000 133,100 50,000 50,000 50,000 Current liabilities Noncurrent liabilities Common stock Additional paid-in capital 50,000 50,000 50,000 Retained earnings 150,000 172,500 200,000 Total liabilities and equity $410,000 $448,500 $493,600 (For the year ended December 31) Revenues Expenses Net income Dividends 2011 2012 2013 $425,000 $460,000 $485,000 387,500 420,000 438,000 $37,500 $40,000 $47,000 $12,500 $17,500 $19,500