_1&step=null Additional Time Used: 06 minutes 50 -- - Browse My Computer Question Completion Status: QUESTION 2 Konica Company acquires 40% of the voting stock of Lexmark Corporation on January 1, 2018 for $ 60,000,000 and treats it as an equity method investment. The book value on that date was $ 100,000,000. Book values approximated fair values except for machinery & equipment that was undervalued by $ 10,000,000 (10 year life), building that was overvalued by $ 4,000,000 (4 year life). Konica also found previously unrecorded intangibles of $ 50,000,000 (indefinite life). Lexmark reports the following income and dividends: Date: year ended December 31, 2018 Income $ 9,000,000 Dividends December 31, 2019 December 31, 2020 $ 6,000,000 $ 5,000,000 O December 31, 2021 $ 5,000,000 o $ 1,000,000 Konica sells inventory to Lexmark at a markup of 25% on cost and Lexmark sells to Konica at a markup of 30% on cost. The following inventory balances are available: Date December 31, 2020 Inventory held by Konica $ 1,560,000 Inventory held by Lexmark December 31, 2021 $ 2,600,000 1,000,000 1,025,000 Required: a. What is equity income reported by Konica on December 31, 2021? b. What is the balance in the Investment in Lexmark account on December 31, 2021? Attach File Browse My Computer Browse Content Collection QUESTION 3 Here is date-of-acquisition information on Fizzy Beverage's assets and liabilities (December 231, 2020): Book Value Fair Value Current assets $ 2,000 $ 1,200 Property, plant and equipment, net 18,000 8,000 Total assets $ 20,000 Liabilities $ 10,000 10,000 Capital stock 2,500 Retained earnings 7,400 Accumulated other comprehensive income 300 Treasury stock (200 Total liabilities and equity $ 20,000 Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answe 99 9 9 CH 57