Gant Company purchased 20 percent of the outstanding shares of Temp Company for $86,000 on January 1, 20X6 The following results are reported for Temp Company 20X6 20X7 20X8 Net income $ 43,000 $ 38,000 $ 64,000 Dividends paid 11,000 29,000 16,000 Fair value of shares held by Gant January 1 86,000 105,000 102,000 December 31 105,000 102,000 113,000 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 that Gant uses the following options in accounting for its investment in Temp Carries the investment at fair value Uses the equity method Required A 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 that Gant uses the fair value option in accounting for its investment in Temp 20X6 20X7 20X8 Income from investment Balance in investment Required B 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 that Gant uses the equity method in accounting for its investment in Temp 20X6 20X7 20X8 Income from investment Balance in investment

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Gant Company purchased 20 percent of the outstanding shares of Temp Company for $86,000 on January 1, 20X6. The following results are reported for Temp

Gant Company purchased 20 percent of the outstanding shares of Temp Company for $86,000 on January 1, 20X6. The following results are reported for Temp Company:

	20X6		20X7		20X8
Net income	$	43,000	$	38,000	$	64,000
Dividends paid		11,000		29,000		16,000
Fair value of shares held by Gant:
January 1		86,000		105,000		102,000
December 31		105,000		102,000		113,000

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 that Gant uses the following options in accounting for its investment in Temp:

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

Required A

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 that Gant uses the fair value option in accounting for its investment in Temp.

	20X6	20X7	20X8
Income from investment
Balance in investment

Required B

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 that Gant uses the equity method in accounting for its investment in Temp.