Imani, Inc., buys 30 percent of ACC Company on January 1, 2023, for $1,450,000. This acquisition gave Imani the ability to exercise significant influence over the investee. ACCs net assets on that date were $3,500,000. Additionally, a copyright with remaining useful life of 8 years is undervalued on ACCs books by 480,000.

In 2023 and 2024, ACC sells inventory to Imani as follows:

YearCost to ACCTransfer PriceAmount Held by Imani at year-end (at transfer price)2023$ 98,000$140,000$56,0002024117,000180,00045,000

ACC reports net income of $215,000 in 2023 and $220,000 in 2024, additionally ACC declares and pays $40,000 in dividends each year.

Additionally, the fair value of Imanis investment in ACC is $1,585,000 at December 31, 2023 and it decreases to $1,540,000 at December 31, 2024.

1. What is the equity income in ACC to be reported by Imani in 2024?

2. What amount should Imani report as its Investment in ACC on its December 31, 2024, balance sheet (assuming equity method)?

3. Assuming Imani elects to use fair-value option for its investment in ACC, what total income from the investment in ACC should be reported in 2024? (Use negative number to indicate loss)