On January 1, Year 4, Goodkey Co. acquired all of the common shares of Jingya. The condensed income statements for the two companies for January, Year 5, were as follows: Sales Goodkey $10,100,000 Jingya $ 6,010,000 Gain on sale of equipment Other income 810,000 10,910,000 242,000 51,000 6,303,000 Depreciation expense Other expenses Income tax expense Net income 460,000 181,000 6,610,000 1,983,000 9,053,000 4,310,000 543,600 5,034,600 $ 1,857,000 $ 1,268,400 The following transactions occurred in January, Year 5, and are properly reflected in the income statements above: On January 1, Year 5, Jingya sold equipment to Goodkey for $1,010,000 and reported a gain of $242,000. On this date, the equipment had a remaining useful life of four years. On January 31, Year 5, Jingya paid a dividend of $610,000. Goodkey uses the cost method to account for its investment in Jingya. Both companies pay income tax at the rate of 40%. (b) Now assume that Goodkey uses the equity method to account for its investment in Jingya. What accounts would change on the three income statements (Goodkey, Jingya, and consolidated) in January, Year 5, and what would be the account balances? (If option "Everything would be the same" is selected, update the net income in the Account balance field. Omit $ sign in your response.) Accounts (Click to select) (Click to select) (Click to select) Income Statement of Goodkey Balance/Net Income Jingya Consolidated $ $ (c) Now assume that Goodkey only owns 80% of the common shares of Jingya and uses the cost method to account for its investment in Jingya. What accounts would change (as compared to part (a)) on the three income statements (Goodkey, Jingya, and consolidated) in January, Year 5, and what would be the account balances? (If option "Everything would be the same" is selected, update the net income in the Account balance field. Do not round your intermediate calculations. Round your final answer to nearest whole dollar. Omit $ sign in your response.) (Click to select) (Click to select) (Click to select) Accounts Income Statement of Goodkey Jingya Consolidated Balance/Net Income