IE $1-2($Algo$)$ Based on Problem $1-26$

During $2022,$ Akron, Incorporated purchased the following stakes in Zip Company on the open market:

During the next two years, the following information is available for Zip Company:

At December $31,2023,$ Zip reports a net book value of $$282,000.$ 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 $31,$

Required:

a$.$ Assume Akron applies the equity method to its investments in Zip account:

What amount of income from its investment in Zip should Akron report for $2024?$

On Akron's December $31,2024,$ 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:

What amount of income from its investment in Zip should Akron report for $2024?$

On Akron's December $31,2024,$ balance sheet, what amount is reported for the investment in Zip account?