Gant Company purchased 20 percent of the outstanding shares of Temp Company for $76,000 on January 1, 20X6. The following results are reported for Temp Company:

20X620X720X8Net income$40,000$35,000$52,000Dividends paid10,00026,00015,000Fair value of shares held by Gant:January 176,00095,00092,000December 3195,00092,000103,000

Required: Determine the amounts reported by Gant as income from its investment in Temp for each year and the balance in Gants investment in Temp at the end of each year assuming thatGant uses the following options in accounting for its investment in Temp:

1. Carries the investment at fair value.
2. Uses the equity method.