On January Bertrand, Incorporated, paid $ for a percent interest in Chestnut Corporation's common stock. This investee had assets with a book value of $ and liabilities of $ A patent held by Chestnut having a $ book value was actually worth $ This patent had a sixyear remaining life. Any further excess cost associated with this acquisition was attributed to an indefinitelived asset. During Chestnut earned income of $ and declared and paid dividends of $ In it had income of $ and dividends of $ During the fair value of Bertrand's investment in Chestnut had risen from $ to $
Required:
a Assuming Bertrand uses the equity method, what balance should appear in the Investment in Chestnut account as of December
b Assuming Bertrand uses fairvalue accounting, what income from the investment in Chestnut should be reported for
Answer is not complete.
a Investment in Chestnut account as per the equity method
$
b Income from the investment in Chestnut as per fairvalue accounting
