Roller Corporation purchased 20 percent ownership of Steam Company on January 1, 20X5, for \(\$ 70,000\). On that date, the book value of net assets reported by Steam Company was \(\$ 200,000\). The excess over book value paid is attributable to depreciable assets with a remaining useful life of 10 years. Net income and dividend payments of Steam Company in the following periods were:

\section*{Required}
Prepare journal entries on the books of Roller Corporation relating to its investment in Steam Company for each of the three years, assuming it accounts for the investment using

(a) the cost method and

(b) the equity method.

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Year Net Income 20X5 $20.000 20X6 40.000 20X7 20,000 Dividends $ 5,000 15.000 35,000