Aganis Inc. paid $790,000 for a 40 percent investment in the common shares of Timberwolf Systems Inc. For the first year, Timberwolf Systems Inc. reported net income of $400,000 and at year-end declared and paid cash dividends of $130,000. On the balance sheet date, the fair value of Aganis Inc.'s investment in Timberwolf Systems Inc. shares was $820,000. Required 1. Which method is appropriate for Aganis Inc. to use in accounting for its investment in Timberwolf Systems Inc.? Why? 2. Show everything that Aganis Inc. would report for the investment and any investment revenue in its year-end financial statements. 3. What role does the fair value of the investment play in this situation? Timberwolf Systems Inc. Requirement 2. Show everything that Aganis Inc. would report for the investment and any investment revenue in its year-end financial statements. Record what Aganis Inc. would report for the investment. (Use a minus sign or parentheses for numbers to be subtracted.)