On December 31, 2019, Akron, Inc., purchased 5 percent of Zip Company's common shares on the open market in exchange for $15,500. On December 31, 2020, Akron, Inc., acquires an additional 25 percent of Zip Company's outstanding common stock for $92,500. During the next two years, the following information is available for Zip Company: At December 31, 2020, Zip reports a net book value of $286,000. 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: 1. What amount of equity income should Akron report for 2021 ? a. Assume Akron applies the equity method to its Investment in Zip account: 1. What amount of equity income should Akron report for 2021 ? 2. 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: 1. What amount of income from its investment in Zip should Akron report for 2021 ? 2. On Akron's December 31, 2021, balance sheet, what amount is reported for the Investment in Zip account