On December 31, 2019. Akron, Inc, purchased 5 percent of Zip Company's common shares on the open market in exchange for $16,200 On December 31, 2020. Akron, Inc, acquires an additional 25 percent of Zip Company's outstanding common stock for $96.750. During the next two years, the following information is available for Zip Company. At December 31, 2020, Zip reports a net book value of $289,000. 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 Q. Assume Akron applies the equity method to its Investment in Zip account: 1 What amount of equity incorne 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 fait-value accounting for its investment in Zip account 1. What amouint 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 occount