What balance should appear in the investment


had assets with a book value of $200,000 and liabilities of $75,000. A patent held by Holister having a $5,000 book value was actually worth $20,000. This patent had a six-year remaining life. Any further excess cost associated with this acquisition was attributed to goodwill. During 2004, Holister earned income of $30,000 and paid dividends of $10,000. In 2005, income was $50,000 and dividends $15,000.
Assuming that Alison has the ability to significantly influence the operations of Holister, what balance should appear in the Investment in Holister account as of December 31, 2005?

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Accounting Basics: What balance should appear in the investment
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