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Saved On January 1, 2017, Allson, Inc., paid $79100 for a 40 percent interest in Holister Corporation's common stock. This investee had assets with a
Saved On January 1, 2017, Allson, Inc., paid $79100 for a 40 percent interest in Holister Corporation's common stock. This investee had assets with a book value of $253,000 and liabilities of $117,000. A patent held by Holister having a $5,900 book value was actually worth $38,900. This patent had a six-year remaining further excess goodwill, During 1in'ng life. Any further excess cost associated with this acquisition was attributed teo $64,000 and dividends of $19,000. During 2018, the fair value of Allison's Investment in Holister had risen from $91,900 to $99,0oo. 2017 Holister e of $41,750 1,750 and declared and paid dividends of $14,000 In 2018, it had income of a. Assuming Alilson uses the equity method, what balance should appeer in the Investment in Holister account as of December 31, 2018 b. Assuming Allson uses fair-value accounting. what income from the investment in Holister should be reported for 2018? nvestement income
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