Capital Corporation purchased 40 percent of the stock of Cook Company on January 1, 20X4, for \(\$ 136,000\). On that date Cook Company reported net assets of \(\$ 300,000\) valued at historical cost and \(\$ 340,000\) stated at fair value. The difference was due to the increased value of buildings with a remaining life of 10 years. During 20X4 and 20X5 Cook Company reported net income of \(\$ 10,000\) and \(\$ 20,000\) and paid dividends of \(\$ 6,000\) and \(\$ 9,000\), respectively.

\section*{Required}

Assuming Capital Corporation uses

(a) the equity method and

(b) the cost method in accounting for its ownership of Cook Company, give the journal entries recorded by Capital Corporation in 20X4 and 20X5.