Ravine Corporation purchased 30 percent ownership of Valley Industries for $93,600 on January 1, 20X6, when Valley had capital stock of $258,000 and retained earnings of $54,000. During the period of January 1, 20X6, through December 31, 20X9, the market value of Ravine's investment in Valley's stock increased by $12,000 each year. The following data were reported by the companies for the years 20X6 through 209: Year 20X6 20X7 20X8 20X9 Required: Operating Income, Ravine Corporation $153,000 99,000 234,000 173,000 Dividends Declared Net Income, Valley Industries $48,000 Ravine Valley $ 77,000 $38,000 68,000 77,000 58,000 10,000 58,000 97,000 40,000 107,000 38,000 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 208 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 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 Year Fair Value 20X6 20X7 20X8 20X9 Equity Method < Required A Required B1 >