On December 31, 2019, Akron, Inc., purchased 5 percent of ZIp Company's common shares on the open market in exchange for $16,100. On December 31, 2020, Akron, Inc., acquires an additional 25 percent of Zip Company's outstanding common stock for $96,250. During the next two years, the followng information is avallable for Zip Company: At December 31, 2020, Zlp reports a net book value of $292,000. Akron attributed any excess of its 30 percent share of Z1p's falr over book value to Its share of Zip's franchise agreements. The franchise agreements had a remaining Iffe 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 ? 2 On Akron's December 31, 2021, balance sheet, what amount is reported for the Investment in ZIp account? b. Assume Akron uses falr-value accounting for its Investment in ZIp account: 1. What amount of Income from its Investment in Z1p should Akron report for 2021 ? 2 On Akron's December 31, 2021, balance sheet, what amount is reported for the Investment in ZIp account