Problem 4 Arch Company has been interested in acquiring an ownership interest in Snap Company looking to perhaps acquiring total ownership in the Company. To that end Arch acquired 70,000 shares of Snap on 5/1/18 at a price of $24 per share. On October 1, 2019 Arch acquired an additional 40,000 shares of the Company at a price of $27 per share. At the date of the acquisitions the stockholder's equity section of Snap had the following information. Any excess of acquisition price over the underlying book value of the shares can be attributed to undervalued property plant and equipment with a remaining life of 10 years. Common stock ($5 par) Paid-in-Capital Retained Earnings 5/1/18 1,000,000 700,000 2,200,000 10/1/19 1,000,000 700,000 3,100.000 Income for 2018 and 2019 $640,000 $810,000 2018 2019 In addition Snap paid the following dividends 3/31/18 $ 30,000 6/30/18 $ 30,000 9/30/18 $ 30,000 12/31/18 $ 30,000 3/31/19 $ 40,000 6/30/19 $ 40,000 9/30/19 $ 40,000 12/31/19 $ 40,000 REQUIRED: A. Determine the amount of investment income from Snap that would be recorded on the books of Arch for 2018 and 2019 (Equity Method). B. What would be the balance in Long-Term Investment in Snap on the balance sheet of Arch at 12/31/18 and 12/31/19? (Equity Method)