On January 1, 2015 Fisher Corporation paid $2,290,000 for 35% of the outstanding voting stock of Steel, Inc and appropriately applies the equity method for its investment. Any excess cost over Steel’s book value was attributed to Goodwill. During 2015, Steel reports $720,000 in net income, 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 December 31, 2015 balance sheet
b) what amount should Fisher report as Equity in Earnings of Steel on its 2015 income statement