On January 1, 20x1, Patrick company purchased a 90% interest in Steven company for $350,000. Steven company had the following stockholders equity: Common stock and paid in capital: $200,000 Retained earnings: $100,000 The building was undervalued by $60,000 and is depreciated over 20 years. Steven company had income of $30,000 for 20x1 and $40,000 for 20x2. No dividends were paid. Patrick company sold its entire investment in Steven company on January 1, 20x3, for $340,000. Required: a. Equity method to reflect its investment in Steven company b. Partial equity method to reflect its investment in Steven company c. Initial value method to reflect its investment in Steven company d. Suppose Patrick company sold 20% of the 90% owned of Steven company for $120,000