Peace Company issued common shares with a par value of $50,000 and a market value of $165,000 in exchange for 30 percent ownership of Symbol Corporation on January 1, 20X2. Symbol reported the following balances on that date:

The estimated economic life of the patents held by Symbol is 10 years. The buildings and equipment are expected to last 12 more years on average. Symbol paid dividends of $9,000 during 20X2 and reported net income of $80,000 for the year.

Required

Compute the amount of investment income (loss) reported by Peace from its investment in Symbol for 20X2 and the balance in the investment account on December 31, 20X2, assuming the equity method is used in accounting for the investment.

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Assets Cash SYMBOL CORPORATION Balance Sheet January 1, 20X2 Accounts Receivable Inventory (FIFO basis) Land Buildings & Equipment Less: Accumulated Depreciation Patent Total Assets Liabilities & Equities Book Value $ 40,000 80,000 120,000 50,000 500,000 (240,000) $550,000 Fair Value $ 40,000 80,000 150,000 65,000 320,000 25,000 $680,000