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Smith purchased 5 percent of Barker?s outstanding stock on October 1, 2013, for $7,475 and acquired an additional 10 percent of Barker for $14,900 on July 1, 2014. Both of these purchases were accounted for as available-for-sale investments. Smith purchases a final 20 percent on December 31, 2015, for $34,200. With this final acquisition, Smith achieves the ability to significantly influence Barker?s decision-making process and employs the equity method.

Barker has a book value of $100,000 as of January 1, 2013. Information follows concerning the operations of this company for the 2013?2015 period. Assume that all income was earned uniformly in each year. Assume also that one-fourth of the total annual dividends are paid at the end of each calendar quarter.

Year	Reported Income	Dividends
2013	$20,000	$ 8,000
2014	30,000	16,000
2015	24,000	9,000

On Barker?s financial records, the book values of all assets and liabilities are the same as their fair values. Any excess cost from either purchase relates to identifiable intangible assets. For each purchase, the excess cost is amortized over 15 years. Amortization for a portion of a year should be based on months.

Smith purchased 5 percent of Barker's outstanding stock on October 1, 2013, for $7,475 and acquired an additional 10 percent of Barker for $14,900 on July 1, 2014. Both of these purchases were accounted for as available-for-sale investments. Smith purchases a final 20 percent on December 31, 2015, for $34,200. With this final acquisition, Smith achieves the ability to significantly influence Barker's decision-making process and employs the equity method. Barker has a book value of $100,000 as of January 1, 2013. Information follows concerning the operations of this company for the 2013-2015 period. Assume that all income was earned uniformly in each year. Assume also that one-fourth of the total annual dividends are paid at the end of each calendar quarter. Year 2013 2014 2015 Reported Income $20,000 30,000 24,000 Dividends $ 8,000 16,000 9,000 On Barker's financial records, the book values of all assets and liabilities are the same as their fair values. Any excess cost from either purchase relates to identifiable intangible assets. For each purchase, the excess cost is amortized over 15 years. Amortization for a portion of a year should be based on months. a. On comparative income statements issued in 2016 for the years of 2013, 2014, and 2015, what would Smith report as its income derived from this investment in Barker? (Do not round intermediate calculations. Round "Equity income 2013" to two decimal places.) Equity Income 2013 Equity Income 2014 Equity Income 2015 b. On a balance sheet as of December 31, 2015, what should Smith report as its investment in Barker? (Do not round intermediate calculations. Round your final answer to two decimal places.)