On February $1,2018,$ Alpha, Inc. purchased $20,000$ shares of Beta Company for $$200,000,$ giving

Alpha a $20\%$ ownership of Beta. The fair value of the $20\%$ investment was the same as the carrying value

of the investment when, on February $1,2019,$ Alpha purchased an additional $30,000$ shares $(30\%)$ of Beta

for $$450,000.$ This last purchase gave Alpha the ability to apply significant influence over Beta. The book

value of Beta on February $1,2018,$ was $$1,200,000.$ The book value of Beta on February $1,2019,$ was

$$1,300,000.$ Any excess of cost over book value for this second transaction is assigned to a patent and

amortized over five years. Beta reports net income and dividends as follows. These amounts are assumed

to have occurred evenly throughout the years:

Page $1$ of $5$

$|$ Year $|$ Net Income $|$ Dividends $|$

On June $1,2020,$ just after its first dividend receipt, Alpha sells $12,000$ shares of its investment.

I. What is the balance in the investment account for the $20\%$ ownership interest, at February $1,$

$2019?$

II$.$ How much income did Alpha report from Beta during $2018?$

III. How much income did Alpha report from Beta during $2019?$

IV$.$ What was the balance in the investment account on December $31,2019?$

V$.$ What was the balance in the investment account on June $1,2020,$ just before the sale of shares?