Question - On January 1, 2015 Fisher Corp paid $2,290,000 for 35% of the outstanding voting stock of Steele, Inc and appropriately applies the equity method for its investment. Any excess cost over Steele's book value was attributed to Goodwill. During 2015, Steele reports $720,000 in net income, a $100,000 other comprehensive income loss. Steele also declares and pays $20,000 in dividends.
a) What amount should Fisher report as its investment in Steel on 12/31/15 balance sheet?
b) What amount should Fisher report as Equity in Earnings of Steele on its 2015 income statement?