On December 31, 2022, Akron, Incorporated, purchased 5 percent of Zip Company's common shares on the open market in exchange for $16,250. On December 31, 2023, Akron, Incorporated, acquires an additional 25 percent of Zip Company's outstanding common stock. for $95,000. During the next two years, the following information is available for Zip Company: At December 31, 2023, Zip reports a net book value of $294,000. Akton 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 to years at December 31 . 2023. Required: a. Assume Akron applies the equity method to its investment in Zip account: 1. What amount of equity income should Akron report for 2024 ? 2. On Akrons December 31, 2024, balance sheet, what amount is reported for the irvestment in Zip account? b. Assume Akron uses fair-value occounting for its Investment in Zp occount: 1. What amount of income from its investment in Zip should Akron report for 2024 ? 2. On Alron's December 31,2024 , balance sheet, what amount is reported for the investment in Zip account