Ravine Corporation purchased 30 percent ownership of Valley Industries for $86,400 on January 1, 20X6, when Valley had capital stock of $246,000 and retained earnings of $42,000. The following data were reported by the companies for the years 20X6 through 20X9:

							Dividends Declared
Year	Operating Income, Ravine Corporation			Net Income, Valley Industries			Ravine			Valley
20X6	$	160,000		$	39,000		$	82,000		$	29,000
20X7		85,000			59,000			82,000			49,000
20X8		227,000			10,000			102,000			40,000
20X9		180,000			49,000			112,000			29,000

Required:

a.	What net income would Ravine Corporation have reported for each of the years, assuming Ravine accounts for the intercorporate investment using the cost method and the equity method?

b-1.	Give all appropriate journal entries for 20X8 that Ravine made under the cost method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

b-2.	Give all appropriate journal entries for 20X8 that Ravine made under the equity method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)