Wish, Inc. acquires 10% of Fantasy Co. on January 1, 2020 for $96,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2021, Wish purchased an additional 25% of Fantasy for $320,000, achieving the ability to exert significant influence over Fantasy. On that date (i.e., Jan. 1, 2021), the fair value of Fantasys common stock was $1,280,000 in total. Fantasys January 1, 2021, book value equaled $940,000, although land was undervalued by $ 70,000. Any additional excess cost over fair value was attributable to an undervalued patent with a 5-year remaining life. During 2021, Fantasy reported net income of $270,000 and paid dividends of $80,000.

Based on the above information, use the prospective approach to account for the change to the equity method and determine the following numbers.

1. The amount of annual excess amortization for 2021.

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2. The amount of equity income that Wish should report for 2021.

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3. Compute the balance of Investment in Fantasy account at the end of 2021.

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