On December 31, 2019, Akron, Inc., purchased 5 percent of Zip Company's common shares on the open market in exchange for $93,000 $18,000. On December 31, 2020, Akron, Inc., acquires an additional 25 percent of Zip Company's outstanding common stock for During the next two years, the following information is available for Zip Company Dividends Common Stock Fair Value Income Declared (12/31) 2019 $322, 080 2020 $69, 060 $6,006 372,090 2821 82 , 060 15,600 484,000 At December 31, 2020, Zip reports a net book value of $283,000. 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. . 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 Akroh 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 81. 2021 balance sheet. what amount is reported for the lavestment in Zip account? score. answerOn December 31, 2019, Akron, Inc., purchased 5 percent of Zip Company's common shares on the open market in exchange for $18,000. On December 31, 2020, Akron, Inc., acquires an additional 25 percent of Zip Company's outstanding common stock for $93,000. During the next two years, the following information is available for Zip Company: Common Stock Dividends Fair Value Income Declared (12/31) 2019 $322,060 2020 $69,080 $6,000 372,006 2021 82,000 15, 606 484,006 At December 31, 2020, Zip reports a net book value of $283,000. 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, 1020. 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? On Akron's December 31 7071 halance sheet what amount is reported for the Investment in 7in account? 342 Contract Sum..doc search O DELL