Question 21 Fill in the dollar changes caused in the Investment account and Dividend Revenue or Investment Revenue account by each of the following transactions, assuming Novak Company uses (a) the fair value method and (b) the equity method for accounting for its investments in Pharoah Company. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any answer field blank. Enter o for amounts.) (a) Fair Value Method Investment Account Dividend Revenue (b) Equity Method Investment Account Investment Revenue Transaction 1. At the beginning of Year 1, Novak bought 30% of Pharoah's common stock at its book value. Total book value of all Pharoah's common stock was $810,000 on this date. 2. (a) During Year 1, Pharoah reported $69,000 of net income. (b) During Year 1, Pharoah paid $31,500 of dividends. 3. (a) During Year 2, Pharoah reported $34,500 of net income. (b) During Year 2, Pharoah paid $20,500 of dividends. 4. (a) During Year 3, Pharoah reported a net loss of $8,000. (b) During Year 3, Pharoah paid $3,800 of dividends. 5. Indicate the Year 3 ending balance in the Investment account, and cumulative totals for Years 1, 2, and 3 for dividend revenue and investment revenue