Problem 2-7 L03 Right Company purchased 25,000 common shares (25%) of ON Inc. on January l, Year II, for $250,000. Right uses the equity method to report its investment in ON because it has significant influence in the operating and investing decisions made by ON. Right has no legal obligation to pay any of ON's liabilities and has not committed to contribute any more funds to ON. Additional information for ON for the four years ending December 31, Year 14, is as follows: Year II Year 12 Year 13 Year 14 Required Net Income $200,000 (300.000) (400,000) (500,000) Dividends paid $60,000 60.000 Market Value per Share at December 31 $12 6 (a) Calculate the balance in the investment account for each of the Years II through 14. Assume that the market value is used in determining whether the investment is impaired. (b) Determine the total income to be reported by Right from its investment in ON for each of the Years I I through 14.