Profound Corporation purchased 24,000 shares, representing 30% ownership, of Simple Company's common stocks in January 20X1 for $360,000 cash. At the date of purchase, Simple had net assets recorded at $1,200,000. At the end of 20X1 (20X2), Simple's shares were traded at $17 ($14) per share. The companies reported the following operating results and dividends for the two years following the date of purchase: Profound Operating income Dividends 20X1 500,000 120,000 20X2 500,000 170,000 Simple Net income 300,000 240,000 Dividends 200,000 400,000 (a) Compute the net income reported by Profound assuming Profound accounts for its investment in Simple using the following method: (1) Carried at Fair Value: 20X1 $ 20X2 $ (2) Equity Method: 20X1 $ 20X2 $