On January 1, 2021, Mediterranean Inc. purchased a 20% interest in Baltic Ltd. by buying 50,000 shares for $17.50 per share. During 2021, Baltic earned income of $300,000 and paid total dividends of $40.000. On December 31, 2021, the market value of Baltic shares was $19.00. Required: a) Calculate the investment income on Mediterranean's statement of income and the balance in the investment account on Mediterranean's statement of financial position as of December 31, 2021 under each of the following methods of accounting for the investment in Baltic: i Fair value through net income ii. Equity method b) Describe the differences between strategic and non-strategic investments. Include examples of reasons why an investor would invest in each type