Fill in the dollar changes caused in the Investment account and Dividend Revenue or Investment Revenue account by each of the following transactions, assuming Metlock Company uses (a) the fair value method and (b) the equity method for accounting for its investments in Whispering Company. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any answer field blank. Enter 0 for amounts.)

(a) Fair Value Method (b) Equity Method

Transaction Investment Account Dividend Revenue Investment Account Investment Revenue

1. At the beginning of Year 1, Metlock bought 30% of Whispering's common stock at its book value. Total book value of all Whispering's common stock was $880,000 on this date.

2. (a) During Year 1, Whispering reported $56,000 of net income.

(b) During Year 1, Whispering paid $30,000 of dividends.

3. (a) During Year 2, Whispering reported $28,000 of net income.

(b) During Year 2, Whispering paid $22,000 of dividends.

4. (a) During Year 3, Whispering reported a net loss of $8,000.

(b) During Year 3, Whispering paid $4,400 of dividends.

5. Indicate the Year 3 ending balance in the Investment account, and cumulative totals for Years 1, 2, and 3 for dividend revenue and investment revenue.