Problem 1-26 (Algo) (LO 1-2, 1-4, 1-5) Check my wor On December 31 2019, Akron, Inc, purchased 5 percent of Zip Company's common shares on the open market in exchange for $17400 On December 31 2020, Akron, Inc, acquires an additional 25 percent of Zip Company's outstanding common stock for $93.500 During the next two years, the following information is available for Zip Company Common Stock Dividends Fat Value Income Declared (12/1) 2019 1917.000 2020 162.000 16.000 374.000 2031 14.680 474.000 Al December 31 2020. Dip reports a netbook value of $292,000 Akron tributed any excess of its 30 percent share of Zip's for over book value to its share of Zip's franchise agreements. The franchise agreements had a remaining life of 10 years at December 3t 2020 a. Assume Akron applies the equity method to its investment in Zip account 1 What amount of equity income should Axron report for 2021 2 on Alcon's December 31 2021, balance sheet, what amount is reported for the Investment in account a. Assume Akron applies the equity method to its Investment in Zip account 1. What amount of equity income should Akron report for 2021? 2 On Akron's December 31, 2021, balance sheet, what amount is reported for the Investment in Zip account? b. Assume Akron uses fair-value accounting for its Investment in Zip account 1 What amount of income from its investment in Zip should Akron report for 2021? 2 On Akron's December 31, 2021. balance sheet, what amount is reported for the investment in Zip account? al Equity income a2 Investment in Zip account 1 Reported income 52 Investment in Zip account