Question - On January 1, 2015, Fisher Corporation paid $2,290,000 for 35 percent of the outstanding voting stock of Steel, Inc., and appropriately applies the equity method for its investment. Any excess of cost over Steel's book value was attributed to goodwill. During 2015, Steel reports $720,000 in net income and a $100,000 other comprehensive income loss. Seel also declares and pays $20,000 in dividends.
a. What amount should Fisher report as its Investment in Steel on its December 31, 2015, balance sheet?
b. What amount should Fisher report as Equity in Earnings of Steel on its December 31, 2015 income statement?