Doone acquired 80 percent of Akrons outstanding shares on January 1, 2013, in exchange for $369,000 in cash. The subsidiarys stockholders equity accounts totaled $353,000 and the noncontrolling interest had a fair value of $92,250 on that day. However, a building (with a ten-year remaining life) in Akrons accounting records was undervalued by $19,000. Doone assigned the rest of the excess fair value over book value to Akrons patented technology (five-year remaining life).

1. Prepare schedules for acquisition-date fair-value allocations and amortizations for year 2013 for Doones investment in Akron (Question1).

2. Akron reported net income from its own operations of $67,000 in 2013 and $83,000 in 2014. Akron declared dividends of $18,000 in 2013 and $22,000 in 2014. Doone applies the equity method for recording its investment in the Akron. Given the above acquisition date data and the additional information, show the calculation of ending balance of investment in Akron on Dec 31, 2014 and amount of equity in investee earnings for year 2014 for Doone (Question2)