PLEASE HELP
On December Akron, Incorporated, purchased percent of Zip Company's common shares on the open market in exchange
for $ On December Akron, Incorporated, acquires an additional percent of Zip Company's outstanding common
stock for $
During the next two years, the following information is available for Zip Company:
At December Zip reports a net book value of $ Akron attributed any excess of its 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 years at December
Required:
o Assume Akron applies the equity method to its Investment in Zip account:
What amount of equity income should Akron report for
On Akron's December balance sheet, what amount is reported for the Investment in Zip account?
b Assume Akron uses fairvalue accounting for its Investment in Zip account:
What amount of income from its investment in Zip should Akron report for
On Akron's December balance sheet, what amount is reported for the Investment in Zip account?
On December Akron, Incorporated, purchased percent of Zip Company's common shares on the open market in exchange
for $ On December Akron, Incorporated, acquires an additional percent of Zip Company's outstanding common
stock for $
During the next two years, the following information is available for Zip Company:
At December Zip reports a net book value of $ Akron attributed any excess of its 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 years at December
Required:
a Assume Akron applies the equity method to its Investment in Zip account:
What amount of equity income should Akron report for
On Akron's December balance sheet, what amount is reported for the Investment in Zip account?
b Assume Akron uses fairvalue accounting for its Investment in Zip account:
What amount of income from its investment in Zip should Akron report for
On Akron's December balance sheet, what amount is reported for the Investment in Zip account?
