Problem $1-16($Algo$)($LO $1-4,1-5,1-8)$

On January $1,2023,$ Bertrand, Incorporated, paid $$83,800$ for a $40$ percent interest in Chestnut Corporation's common stock. This

investee had assets with a book value of $$290,500$ and liabilities of $$117,000.$ A patent held by Chestnut having a $$13,600$ book value

was actually worth $$31,600.$ This patent had a six$-$year remaining life. Any further excess cost associated with this acquisition was

attributed to an indefinite$-$lived asset. During $2023,$ Chestnut earned income of $$40,700$ and declared and paid dividends of $$14,000.$

In $2024,$ it had income of $$70,000$ and dividends of $$19,000.$ During $2024,$ the fair value of Bertrand's investment in Chestnut had risen

from $$95,380$ to $$106,180.$

Required:

a$.$ Assuming Bertrand uses the equity method, what balance should appear in the Investment in Chestnut account as of December $31,$

$2024?$

b$.$ Assuming Bertrand uses fair$-$value accounting, what income from the investment in Chestnut should be reported for $2024?$