Ravine Corporation purchased 30 percent ownership of Valley Industries for $90,000 on January 1, 20X6, when Valley had capital stock of $240,000 and retained earnings of $60,000. During the period of January 1, 20X6, through December 31, 20X9, the market value of Ravine's investment in Valley's stock increased by $10,000 each year. The following data were reported by the companies for the years 20X6 through 20X9 Dividends Declared Operating Income, Ravine CorporationValley Industries Net Income, Valley $20,000 40,000 40,000 20,000 Ravine Year 20X6 20X7 20X8 20x9 $140,000 80,000 220,000 160,000 $30,000 50,000 10,000 40,000 $70,000 70,000 90,000 100,000 Required a. What net income would Ravine Corporation have reported for each of the years, assuming Ravine accounts for the intercorporate investment either by carrying the investment at fair value, or by using the equity method? b-1. Give all appropriate journal entries for 20X8 that Ravine would make if it carries the investment at fair value b-2. Give all appropriate journal entries for 20X8 that Ravine would make if it uses the equity method