On December $31,2019,$ Akron, Inc., purchased $5$ percent of Zip Company's common shares on the

open market in exchange for $$16,250.$ On December $31,2020,$ Akron, Inc., acquires an additional $25$

percent of Zip Company's outstanding common stock for $$95,000.$

During the next two years, the following information is available for Zip Company:

At December $31,2020,$ Zip reports a net book value of $$294,000.$ Akron attributed any excess of its

$30$ percent share of Zip's fair over book value to its share of Zip's franchise agreements. The

franchise agreements had a remaining life of $10$ years at December $31,2020.$

a$.$ Assume Akron applies the equity method to its Investment in Zip account:

What amount of equity income should Akron report for $2021?$

On Akron's December $31,2021,$ balance sheet, what amount is reported for the Investment in

Zip account?

b$.$ Assume Akron uses fair$-$value accounting for its Investment in Zip account:

What amount of income from its investment in Zip should Akron report for $2021?$

On Akron's December $31,2021,$ balance sheet, what amount is reported for the Investment in

Zip account?