Ravine Corporation purchased 30 percent ownership of Valley Industries for $91,800 on January 1, 20X6, when Valley had capital stock of $249,000 and retained earnings of $57,000. 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: Year 20X6 20X7 20x8 20X9 Required: Operating Income, Ravine Corporation) $154,000 Net Income, Valley Industries. 98,000 222,000 174,000 $38,000 58,000 10,000 48,000 Dividends Declared Ravine Valley $ 84,000 $28,000 84,000 48,000 104,000 40,000 114,000 28,000 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. Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 Complete this question by entering your answers in the tabs below. Required A Required B1 Required B2 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? Net Income: Equity Method Year Fair Value 20X6 20X7 20X8 20X9 + ok k ht nces View transaction list Journal entry worksheet < A B Record the dividend received from Valley Industries under the fair value method. Note: Enter debits before credits. Event 1 General Journal Debit Credit Journal entry worksheet A B Record the unrealized gain from Valley Industries under the fair value method. Note: Enter debits before credits. Event 2 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < A B Record the dividend received from Valley Industries under the equity method. Note: Enter debits before credits. Event 1 General Journal Debit Credit > Journal entry worksheet A B Record the share in net income of Valley Industries under the equity method. Note: Enter debits before credits. Event 2 General Journal Debit Credit