1. On January 1, 2019, Monroe, Inc., purchased 12,000 shares of Brown Company for $250,000, giving Monroe 10 percent ownership of Brown. On January 1, 2020, Monroe purchased an additional 18,000 shares for $590,000. This latest purchase gave Monroe the ability to apply significant influence over Brown. The original 10 percent investment was categorized as an available for sale security. Any excess of cost over book value acquired for either investment was attributed solely to goodwill. These amounts are assumed to have Brown reports net income and dividends as follows. occurred evenly throughout these years. 2019 2020 2021 Net Income $300,000 400,000 500,000 Cash Dividends (paid quarterly) $160,000 180,000 200,000 On July 1, 2021, Monroe sells 3,600 shares of this investment for $39 per share, thus reducing its interest in Brown. However, the company retains the ability to significantly influence Brown Using the equity method what amounts appear on Monroe's 2021 income statement? a) b) Total income accrual. Gain or loss on sale of investment