On january 1, 2017, alison, inc., paid $89,000 for a 40 percent interest in hollister corporation’s common stock. this investee had assets with a book value of $254,000 and liabilities of $92,500. a patent held by hollister having a $8,600 book value was actually worth $43,100. this patent had a six-year remaining life. any further excess cost associated with this acquisition was attributed to goodwill. during 2017, holister earned income of $41,500 and declared and paid dividends of $14,000. in 2018, it had income of $70,700 and dividends of $19,000. during 2018, the fair value of allison’s investment in holister had risen from $100,700 to $109,780. a. assuming alison uses the equity method, what balance should appear in the investment in holister account as of december 31, 2018

Listed below are several transactions that took place during the first two years of operations for the law firm of pete, pete, and roy.year 1 year 2amounts billed to clients for services rendered $ 170,000 $ 220,000 cash collected from clients 160,000 190,000 cash disbursements salaries paid to employees for services rendered during the year 90,000 100,000 utilities 30,000 40,000 purchase of insurance policy 60,000 0 in addition, you learn that the company incurred utility costs of $35,000 in year 1, that there were no liabilities at the end of year 2, no anticipated bad debts on receivables, and that the insurance policy covers a three-year period.required: 1. & 3. calculate the net operating cash flow for years 1 and 2 and determine the amount of receivables from clients that the company would show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model.2. prepare an income statement for each year according to the accrual accounting model.