$3(20$ pts$)$

Relish Company purchased $15\%$ of Squall Company on January $1,2025$ for $$300,000.$ At the time, there was no

significant influence and the securities were short term investments. Squall had earnings in $2025$ of

$$250,000$ and paid dividends of $$60,000.$ At December $31,2025$ the value of Relish's interest in Squall had

fallen to $$275,000.$

a$.$ Using the market value method, record the activity for $2025$ on the books of Relish.

b$.$ Assuming the $$300,000$ purchase above represented $30\%$ interest in Squall, use the equity method to

record the activity for $2025$ on the books of Relish.