On January 1, 2011, Acme Co. is considering purchasing a 40 percent ownership interest in PHC Co., a privately held enterprise, for $700,000. PHC predicts its profit will be $185,000 in 2011, projects a 10 percent annual increase in profits in each of the next four years, and expects to pay a steady annual dividend of $30,000 for the foreseeable future. Because PHC has on its books a patent that is undervalued by $375,000, Acme realizes that it will have an additional amortization expense of $15,000 per year over the next 10 yearsthe patents estimated useful life. All of PHCs other assets and liabilities have book values that approximate market values. Acme uses the equity method for its investment in PHC. Required 1. Using an Excel spreadsheet, set the following values in cells: Acmes cost of investment in PHC. Percentage acquired. First-year PHC reported income. Projected growth rate in income. PHC annual dividends. Annual excess patent amortization