(a) the falr value method and (b) the equity method for accounting for its imestments in niflary Compary. Tramsaction 1. At the beginning of Year 1. George bought 40% of Tstamy's common stock at its book value. Total book value af all Thtany's common stock was $1.000,000 on this date. 2. During Year 1, nttary reported $50,000 of net income and paid $50,000 of dividends. 3. During Year 2, Tiffany reported $100,000 of net inceme and paid $20,000 of dividends. 4. During Year 3, Tiflany reported a net loss of $15,000 and paid $5,000 of dividends. 5. Indicate the Year 3 ending balance in the investment account, and cumulative totals for Years 1, 2, and 3 for dividend revenue and tmestment revenue. Note: At the end of Year 3 the FMV of Tiffany's common stock was $1.500.000