ort Answer #S On January 1, 2021, Danville, Inc., exchanged $177,525 for 25 percent of Sawyer Corporation. Danville appropriately applied the equity method to this investment. At January 1, the book values of Sawyer's assets and liabilities approximated their fair values. On June 30, 2021, Danville paid $598,500 for an additional 70 percent of Sawyer, thus increasing its overall ownership to 95 percent. The price paid for the 70 percent acquisition was proportionate to Sawyer's total fair value. At June 30, the carrying amounts of Sawyer's assets and liabilities approximated their fair values. Any remaining excess fair value was attributed to goodwill. Sawyer reports the following amounts at December 31, 2021 (credit balances shown in parentheses): Revenues Expenses Retained earnings, January 1 $(344,000) 205,000 (211,700) Dividends declared, October 1 10,000 Common stock (500,000) Sawyer's revenue and expenses were distributed evenly throughout the year, and no changes in Sawyer' stock have occurred. a. Using the acquisition method, calculate the acquisition-date fair value of Sawyer to be included Danville's June 30 consolidated financial statements. b. Using the acquisition method, calculate the revaluation gain (or loss) reported by Danville for i 25 percent investment in Sawyer on June 30. c. Record the revaluation gain on June 30.