Jacob Corporation paid $536,200 for a 30% share of Gardner Enterprises on January 1 of the current year. Gardner reported net assets at a book value of $1,414,000 on the date of acquisition. On the date of acquisition, it was determined that Gardners plant assets were undervalued by $118,000. Gardners plant assets have a 10-year remaining life and are depreciated by the straight-line method with no residual value. Gardner reported net income of $224,000 and declared and paid cash dividends of $182,000 during the current year. Finally, Gardners common shares are valued at $1,737,667 at the end of the current year.

1. Prepare a schedule that compares the amount and timing of revenue recognition for the fair value option and the equity methods.