On December $31,2022,$ Akron, Incorporated, purchased $5$ percent of ZIp Company's common shares on the open market in exchange

for $$15,750.$ On December $31,2023,$ Akron, Incorporated, acquires an additional $25$ percent of ZIp Company's outstanding common

stock for $$97,250.$

During the next two years, the following Information is avallable for ZIp Company:

At December $31,2023,$ ZIp reports a net book value of $$282,000.$ Akron attributed any excess of Its $30$ percent share of Zip's falr over

book value to Its share of ZIp's franchise agreements. The franchise agreements had a remaining life of $10$ years at December $31,$

$2023.$

Required:

a$.$ Assume Akron applies the equity method to Its Investment In ZIp account:

What amount of equity Income should Akron report for $2024?$

On Akron's December $31,2024,$ balance sheet, what amount is reported for the Investment in Zip account?

b$.$ Assume Akron uses falr$-$value accounting for Its Investment in Zlp account:

What amount of Income from its Investment in Zip should Akron report for $2024?$

On Akron's December $31,2024,$ balance sheet, what amount is reported for the Investment in Zip account?