Johnson, an investor in Acme Co., asked Smith, CPA for advice on the propriety of Acme's financial reporting for two of its investments. Smith obtained the following information related to the investments from Acme:s December 31, 20X7, financial statements: 20% ownership interest in Kern Co., represented by 200,000 shares of outstanding common stock purchased on January 2, 20X7, for $600,000. 20% ownership interest in Wand Co., represented by 20,000 shares of outstanding common stock purchased on January 2, 20X7, for $300,000. On January 2, 20X7, the carrying values of the acquired shares of both investments equaled their purchase price . Kern reported earnings of $400,000 for the year ended December 31, 20x7, and declared and paid dividends of $100,000 during 20X7 Wand reported earnings of $350,000 for the year ended December 31, 20X7, and declared and paid On December 31, 20X7, Kern's and Wand's common stock were trading over-the counter at $18 and $20 per The investment in Kern is accounted for using the equity method. dividends of $60,000 during 20X7, share, respectively. The investment in Wand is accounted for as available-for-sale securities. Smith recalculated the amounts reported in Acme's December 31, 20X7, financial statements, and determined that they were correct. Stressing that the information available in the financial statements was limited, Smith advised Johnson that, assuming Acme properly applied generally accepted accounting principles, Acme may have appropriately used two different methods to account for its investments in Kern and Wand, even though the investments represent equal ownership interests. Required: Complete the schedule indicating the amounts Acme should report for the two investments in its December 31, 20x7, balance sheet, statement of income and comprehensive income. Ignore income taxes