2. On January 1, 2020, Allan acquires 9 percent of Bellevue's outstanding common stock for $40,000. Allan classifies the investment as an available-for-sale security and records any unrealized holding gains or losses directly in owners' equity. On January 1, 2021, Allan buys an additional 13 percent of Bellevue for $54,600, providing Allan the ability to significantly influence Bellevue's decisions. During the next two years, the following information is available for Bellevue: Income Dividends Common stock fair value (12/31) 2020 2021 $70,000 80,000 $30,000 50,000 $420,000 480,000 In cach purchase, Allan attributes any excess of cost over book value to Bellevue's franchise agreements that had a remaining life of 11 years at January 1, 2020. Also at January 1, 2020, Bellevue reports a net book value of $310,000. Assume Allan applies the equity method to its investment in Bellevue account: (A-1) On Allan's December 31, 2021, balance sheet, what amount is reported for the investment in Bellevue's account? (A-2) What amount of equity income should Allan report for 2021? (A-3) Prepare the January 1, 2021, journal entry to retrospectively adjust the Investment in Bellevue account to the equity method. Assume Allan elects the fair-value reporting option for its investment in Bellevue: (B-1) On Allan's December 31, 2021, balance sheet, what amount is reported for the investment in Bellevue account? (B-2) What amount of income from its investment in Bellevue should Allan report for 2021