AP13-5A (FV-NI and equity methods) On January 1, 2020, Rain Inc. purchased a 20% interest in Waterworks Ltd. by buying 50,000 shares for $8.00 per share. During 2020, Waterworks earned income of $160,000 and paid dividends of $20,000. On December 31, 2020, the market value of Waterworks shares was $8.80. Required: a. Compare the investment income reported on Rain's statement of income under each of the follow- ing methods of accounting for the investment in Waterworks: i. Fair value through net income ii. Equity method b. Compare the balance in the investment account on Rain's statement of financial position as at Decem- ber 31, 2020, under each of the following methods of accounting for the investment in Waterworks: