Answer A, B-1 and B-2 (Everything)

Ravine Corporation purchased 40 percent ownership of Valley Industries for $123,600 on January 1,206, when Valley had capital stock of $252.000 and retained eamings of $57,000. During the period of January 1, 20X6, through December 31,209, the market value of Ravine's investment in Valley's stock increased by $12,000 each year. The following data were reported by the companies for the years 206 through 209. Required: o. What net income would Ravine Corporation have reported for each of the years, assuming Ravine accounts for the intercorporate investment elther by carrying the investment at fair value; or by using the equity method? b-1. Give all appropriate journal entries for 208 that Ravine would make if it carries the investment at falr value. b.2. Give all appropilate journal entries for 208 that Ravine would make if it uses the equity method. Complete this question by entering your answers in the tabs below. What net income would Ravine Corporation have reported for each of the years, assuming Ravine accounts for the intercorporate investment either by carrying the investment at fair value, or by using the equity method? Give all appropriate journal entries for 208 that Ravine would make if it carries the investment at fair value. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Record the dividend received from Valley Industries under the fair value method. Note: Enter debits before credits. Give all appropriate journal entries for 208 that Ravine would make if it carries the investment at fair value. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Record the unrealized gain from Valley Industries under the fair value method. Note: Enter debits before credits. Give all appropriate journal entries for 208 that Ravine would make if it uses the equity method. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account fleid. Journal entry worksheet Record the dividend received from Valley Industries under the equity method. Note: Enter debits before credits. Give all appropriate journal entrles for 208 that Ravine would make if it uses the equity method. Note; If no entry is required for a transaction/event, select "No fournal entry required" in the first account field. Journal entry worksheet Record the share in net income of Valley Industries under the equity method. Note: Enter debits before credits