On January 1, 2017, Stream Company acquired 25 percent of the outstanding voting shares of Q-Video, Inc., for $656,000. Q-Video manufactures specialty cables for computer monitors. On that date, Q-Video reported assets and liabilities with book values of $1.6 million and $728.000, respectively. A customer list compiled by Q-Video had an appraised value of $212,000, although it was not recorded on its books. The expected remaining life of the customer list was 5 years with a straight-line amortization deemed appropriate. Any remaining excess cost was not identifiable with any particular asset and thus was considered goodwill. Q_Video generated net income of $310,000 in 2017 and a net loss of $94,000 in 2018. In each of these two years, Q-Video declared and paid a cash dividend of $10,000 to its stockholders. During 2017. Q-Video sold inventory that had an original cost of $120,120 to Stream for $156,000. Of this balance. $78,000 was resold to outsiders during 2017 and the remainder was sold during 2018. In 2018, Q-Video sold inventory to Stream for $176,000. This inventory had cost only $132,000. Stream resold $96,000 of the inventory during 2018 and the rest during 2019. For 2017 and then for 2018, compute the amount that Stream should report as income from its investment in Q-Video in its external financial statements under the equity method. (Enter your answers in whole dollars and not in millions. Do not round intermediate calculations.) of 2017 Equity income 2018 Equity loss of On July 1, 2016, Killearn Company acquired 84.000 of the outstanding shares of Shaun Company for $20 per share. This acquisition gave killearn a 25 percent ownership of Shaun and allowed killearn to significantly influence the investee's decisions. As of July 1, 2016, the investee had assets with a book value of $5 million and liabilities of $266,400. At the time, Shaun held equipment appraised at $476,000 above book value; it was considered to have a seven-year remaining life with no salvage value. Shaun also held a copyright with a five-year remaining life on its books that was undervalued by $1.212,000. Any remaining excess cost was attributable to goodwill. Depreciation and amortization are computed using the straight-line method. Killearn applies the equity method for its investment in Shaun. Shaun's policy is to declare and pay a 51 per share cash dividend every April 1 and October 1. Shaun's income, earned evenly throughout each year, was $645,000 in 2016, S679,800 in 2017 and $723,000 in 2018. In addition, Killearn sold inventory costing $139,200 to Shaun for $232,000 during 2017. Shaun resold $101,500 of this inventory during 2017 and the remaining $130,500 during 2018 a. Determine the equity income to be recognized by Killearn during each of these years b. Compute Killearn's investment in Shaun Company's balance as of December 31, 2018 (For all requirements, enter your answers in whole dollars and not in millions.) a $ 41,825 Equity income 2016 Equity Income 2017 Equity income 2018 Investment in Shaun b $ 1,497,325