Accounting for business combination - please do part b)

Profound Corporation purchased 24,000 shares, representing 30% ownership, of Simple Company's common stocks in January 20X1 for $360,000 cash. At the date of purchase, Simple had not assets recorded at $1, 200,000. At the end of 20X1 (20X2). Simple's shares were traded at $17 ($14) per share. The companies reported the following operating results and dividends for the two years following the date of purchase. a) Compute the net income reported by Profound assuming Profound accounts for its investment in Simple classified as trading securities using the following method. Cos Method: 20X1 $___ 20X2 $ ___ Equity Method: 20x1 $___ 20X2 $ ___ Fair Value Method: 20X1 $ ___ 20X2 $ ___ b) Compute the balance in the investment in Simple reported by Profound at the end of each of the two years assuming Profound uses the following methods for its investment Cost Method: 20X1 $ ___ 20X2 $ ___ Equity Method: 20X1 $ ___ 20X2 $ ___ Fair Value Method: 20X1 $ ___ 20X2 $ ___