Perkins Company owns 85% of Sheraton Company. Perkins purchased 85,000 shares of Sheraton for 1,700,000 in 1/1/2017, when Sheratons equity is capital stock 1,500,000 and retained earnings of 500,000. Sheratons retained earnings grew to $700,000 at the end of 2018. In 2019, Sheraton Company starts to sell merchandise to Perkins Company at 20% above cost. During 2019 and 2020, such sales amounted to $450,000 and $486,000, respectively. At the end of each year, Sheraton Company had in its inventory one-third of the amount of goods purchased from Perkins during that year. Also, Perkins Co Sheraton Co Net income Dividend Net income Dividend 2019 2,500,000 500,000 300,000 100,000 2020 3,000,000 600,000 450,000 200,000

a. Assuming that Perkins Co uses cost method, b. Assuming that Perkins Co uses partial equity method,