The amount reported for the investment in Zip Company by Akron's December 31, 2021, balance sheet is <u>$143,400</u>, which is the fair value of the Common Stock of Zip Company.
<h3>What is the fair value of an investment?</h3>
The fair value of an investment is the current value and not the historical cost when the investment was made.
Fair value refers to the intrinsic worth of an asset or security.
<h3>Data and Calculations:</h3>
Income Dividends Common Stock Akron's Investment
Declared Fair Value (12/31) in Zip Company
2019 $321,000 $16,050 ($321,000 x 5%)
2020 $79,000 $6,200 376,000 $94,000 ($376,000 x 25%)
2021 89,000 15,800 478,000 $143,400 ($478,000 x 30%)
Excess attributed to share of Zip's franchises = $33,350 ($143,400 - $110,050).
Thus, the amount reported for the investment in Zip Company by Akron's December 31, 2021, balance sheet is <u>$143,400.</u>
Learn more about the fair value of an investment at brainly.com/question/13219936
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