Melville Inc. purchased 2,000 common shares (20%) of Raymore Ltd. on January 1, Year 5 for $42,000. Additional information on Raymore for the two years ending December 31, Year 6, is as follows: Year Year 5 Year 6 Net Income $25,000 28,000 Dividends Paid $13,000 14,000 Market Value per share at end of period $22.00 22.60 At December 31, Year 6, Raymore had some inventory that was purchased from Melville. Melville had recorded a gross profit of $1,300 on the sale of this inventory. This gross profit should be deducted from Melville's Year 6 profit and investment account under the equity method. On January 1, Year 7, Melville sold its investment in Raymore for $47,000. Required: (a) Calculate the balance in the investment account at December 31, Year 6 under each of the cost and equity methods. (Omit $ sign in your response.) Investment account at end of Year 6 under cost method Investment account at end of Year 6 under equity method $ 42,000 $ 52,340 (b) Calculate the investment income for Year 6 under each of the cost and equity methods. (Omit $ sign in your response.) Investment income for Year 6 under cost method Investment income for Year 6 under equity method 0 $ 10,340 (c) Prepare the journal entries for the sale of the shares on January 1, Year 7 under each of the cost and equity methods. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) General Journal No A Transaction 01 Cash Investment in Raymore Gain on sale of investment B 02 Cash Investment loss Investment in Raymore *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. Debit 47,000 Credit 42,000 5,000 47,000 5,340 52,340