Fill in the dollar changes caused in the investment account and dividend revenue or investment revenue account by each of the following transactions, assuming Crane company uses (a) the fair value method and (b) the equity method for accounting for its investments in Hudson Company.

(a) Fair Value Method (b) Equity Method

Investment Dividend Investment Investment

Account Revenue Account Revenue

Transactions

1. At the beginnig of year 1, Crane bought

25% of Hudson's common stock at its book

value. Total book value of all Hudson's

common stock was 4800,000 on this date.

2 .During year 1, Hudson reported $60,000 of

net income and paid 430,000 of dividends

3. During year 2, Hudson reported $30,000 of

net income and paid $20,000 of dividends

4. During Year 3, Hudson reported a net loss

of $10,000 and paid $4,000 of dividends

5. Indicate the Year 3 ending balance in the

Investment account, and cumulative totals

for Year 1, 2, and 3 for dividend revenue

and investment revenue.