On January 1, 2013, Fisher Corporation paid $2,290,000 for 35 percent of the outstanding

On January 1, 2013, 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 2013, Steel reports
$720,000 in net income and a $100,000 other comprehensive income loss. Steel also declares
and pays $20,000 in dividends.
a. What amount should Fisher report as its Investment in Steel on its December 31, 2013,
balance sheet?
b. What amount should Fisher report as Equity in Earnings of Steel on its 2013 income
statement?