Prepare the journal entries for each of the following transactions, assuming Crane Company uses the fair value method and (b) the equity method for accounting for its investments in Hudson Company. (Indicate which method aligns with each entry). 1. At the beginning of Year 1, Crane bought 30% of Hudson's common stock at its book value. Total book value of all Hudson's common stock was $800,000 on this date. During Year 1, Hudson reported $60,000 of net income and paid $30,000 of dividends. 3. During Year 2, Hudson reported $30,000 of net income and paid $20,000 of dividends. 4. During Year 3, Hudson reported a net loss of $10,000 and paid $4,000 of dividends