I'm having issues determining how the financial statements will be effected under these two methods. I can't figure out if net income will increase from the cash dividend and if that will go on the income statement. Please help.

PROBLEM 1 Farmer, Inc. received S1 Scenario A: assume that . Inc. received $15,000 in dividends on its investment in Garden, Corp. during 2013. o A: assume that Farmer, Inc. uses the fair value method to account for its long-term investment in Garden, Corp. Scenario B: assume that Farmer, Inc. uses the equity method to account for its long-term investment in Garden, Corp. For each scenario, first prepare the journal entry to record the receipt of the dividends and then identify the effect that the receipt of dividends will have on the income statement and the balance sheet. If the financial statement isn't affected, write no effect: Scenario A: Fair Value Method201 JE Caskh Dividend Pevende 5000 Income Statement