Problem 1-26 (Algo) (LO 1-2, 1-4, 1-5) On December 31, 2019, Akron, Inc., purchased 5 percent of Zip Company's common shares on the open market in exchange for $16,200. On December 31, 2020, Akron, Inc., acquires an additional 25 percent of Zip Company's outstanding common stock for $97,000. During the next two years, the following information is available for Zip Company: Dividends Common Stock Fair Value Income Declared (12/31) 2019 2020 2021 $70,000 82,000 $7,100 14,200 $324,000 388,000 481,000 At December 31, 2020, Zip reports a net book value of $288,000. Akron 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 10 years at December 31, 2020.