On Jan. 1, 2020 ABC Co. purchased, as a long term investment, 1,000 shares of XYZ Co. stock for $110,000. During 2020 XYZ Co. paid out $30,000 in total cash dividends and had a net loss of $20,000. The market value of XYZ Co. stock at Dec. 31, 2020 is $105 per share.

a) Prepare all the journal entries required by ABC Co. for 2020 if the investment represents a 10% ownership interest in XYZ Co. stock. (use the Available for Sale securities method)

b) Prepare all the journal entries required by ABC Co. for 2020 if the investment represents a 30% ownership interest in XYZ Co. stock. (use the Equity method)