Ravine Corporation purchased 30 percent ownership of Valley Industries for S90,000 on January 1, 20X6, when Valley had capital stock of $240,000 and retained earnings of S60,000. 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 Operating Income. Net Income. Year Ravine Corporation Valley Industries 20X6 S140.000 S30,000 20X7 S0.000 50.000 20XS 220.000 10.000 20x9 160,000 40,000 Dividends Declared Ravine Valley S 70.000 S20.000 70.000 40.000 90.000 40.000 100.000 20,000 Required a. What net income would Ravine Corporation have reported for each of the years, assuming Ravine accounts for the intercorporate investment either by (a) carrying the investment at fair value, or by (b) using the equity method? b. Give all appropriate journal entries for 20XS that Ravine would make if it (a) carries the investment at fair value, or (b) uses the equity method