On January 4,2021 , Universal Comp. paid $324 million for 10 million shares of United Company common stock. The investment represents a 30% interest in the net assets of United. Universal received dividends from United of $2.0 per share on December 15,2021 , and United reported net income of $160 million for the year ended December 31, 2021. The market value of United's common stock on December 31,2021 , was $31 per share. On the purchase date, the book value of United's net assets was $800 million and: a) The fair value of United's depreciable assets, with an average remaining useful life of six years, exceeded their book value by $80 million. b) The fair value of United's inventories exceeded their book value by $5 million. All inventories acquired were sold during 2021. c) The remainder of the excess of the cost of the investment over the book value of net assets purchased was attributable to goodwill. Required: 1) Assume that the 30% interest in United, does not give Universal the ability to exercise significant influence over United's operations. Prepare the necessary journal entries assuming that Universal accounts for this investment using the fair value method. 2) Assume that the 30% interest in United gave Universal the ability to exercise significant influence over United's operations. Prepare the necessary journal entries assuming that Universal accounts for this investment using the equity method