Pender Corp. paid $300,000 for a 30% interest in Saltspring Limited on January 1, Year 6. During Year 6, Saltspring paid dividends of $113,000 and reported profit as follows: Profit before discontinued operations Discontinued operations loss (net of tax) Profit $354,000 (33,900) $320,100 Pender's profit for Year 6 is calculated on $1,017,000 in sales, expenses of $113,000, income tax expense of $361,600, and its investment income from Saltspring. Both companies have an income tax rate of 40%. Required: (a) Assume that Pender reports its investment using the equity method. (i) Prepare all journal entries necessary to account for Pender's investment for Year 6. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) (i) Prepare all journal entries necessary to account for Pender's investment for Year 6. (If no entry is req select "No journal entry required" in the first account field.) View transaction list A Record 30% investment in Saltspring. B Record dividends received. c Record 30% of Saltspring's profit and discontinued operations. 7 (ii) Determine the correct balance in Pender's investment account at December 31, Year 6. Balance in Pender's investment account (iii) Prepare an income statement for Pender for Year 6. (Negative amounts and deductibles should be indicated Omit $ sign in your response.) (Click to select) (Click to select) (Click to select) Pender Corp Income statement Year ended December 31, Year 6 Income before income tax (Click to select) Net income before discontinued operations (Click to select) (Click to select) (Click to select) Pender Corp Income statement Year ended December 31, Year 6 (Click to select) Income before income tax (Click to select) Net income before discontinued operations (Click to select) (Click to select) A (b) Assume that Pender uses the cost method. (i) Prepare all journal entries necessary to account for Pender's investment for Year 6. (If no entry is required for a t select "No Journal Entry Required" in the first account field.) View transaction list A Record 30% Investment in Saltspring. B Record dividends received. C Record 30% of Saltspring's profit and discontinued operations. > (ii) Determine the correct balance in Pender's investment account at December 31, Year 6. Balance in Pender's investment account (iii) Prepare an income statement for Pender for Year 6. (Negative amounts and deductibles should be indica Omit $ sign in your response.) (Click to select) (Click to select) (Click to select) Pender Corp Income statement Year ended December 31, Year 6 Income before income tax (Click to select) (Click to select) $ (c-1) Compute return on investment under the cost method and return on investment under the equity method. (Round your answers