| On January 1, 2014, Alison, Inc., paid $90,400 for a 40 percent interest in Holister Corporations common stock. This investee had assets with a book value of $248,500 and liabilities of $93,500. A patent held by Holister having a $12,300 book value was actually worth $55,800. This patent had a six-year remaining life. Any further excess cost associated with this acquisition was attributed to goodwill. During 2014, Holister earned income of $52,500 and declared and paid dividends of $18,000. In 2015, it had income of $56,000 and dividends of $23,000. During 2015, the fair value of Allisons investment in Holister had risen from $102,300 to $107,100. |
