c) Give appropiate journal entries for 20x2 that profound made under the cost, equity, and fair value methods

Review Problem (Ch. 2) Profound Corporation purchased 24.000 shares, representing 30% ownership, of Simple Company's common stocks in January for s360,000 cash. At the date of purchase, Simple had net assets recordoa at $1,200,000. the end of 2 20x2. Simple's shares were traded at S17 share. The companies reported the operating results and dividends for the two years following the date of NctincomG 300,000 200,000 incoms 120,000 200,000 20X1 20X2 200,000 70,000 240,000 400,000 (a) Compute the net income reported by Profound assuming Profound accounts for its investment in Simple (classified as "trading" securities) using the following method: Cost Method: 20x1 S 20X2 S 20x1 20X2 S 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: (1) Cost Method: 20x1 s 20x2 20X1 20x2 3) Fair Value Method: 20xi 20X2