Business, 05.09.2021 23:30 qdogisbeast7662

On December 31, 2016, Akron, Inc. purchased 5 Percent of Zip Company's common shares on the open market in exchange for $16,600. On December 31, 2017, Akron, Inc., acquires an additional 25 percent of Zip Company's outstanding common stock for $97,500.During the next two years, the following information is available for Zip Company: IncomeDividends DeclaredCommon StockFair Value (12/31)2016 $315,0002017$70,000$6,700390,000201 890,00014,500472,000 At December 31, 2017, Zip reports a net book value of $287,000. 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, 2017. Assume Akron uses fair value method to its Investment in Zip account: What amount of income from its investment in Zip should Akron report for 2018

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On December 31, 2016, Akron, Inc. purchased 5 Percent of Zip Company's common shares on the open mar...