Piano acquired 80% of the common stock of Sitar for $140,000 cash on January 1, 2018. At this date, Sitar reported net assets equal to $150,000. Sitar’s net assets had historical book values that approximately equaled their fair values, exceptfor a customer list that had a fair value equal to $15,000 but a book value of $5,000. The customer list has a 5-year remaining useful life at January 1, 2018. Piano uses the equity method to account for the investment in Sitar. Sitar reported net income of $20,000 and paid dividends of $10,000 during 2018 and 2019.Required:Determine the "Investment in Sitar" balance at January 1, 2018. Describe how this balance relates to the amounts recognized on Sitar’s balance sheet?