Ravine Corporation purchased 30 percent ownership of Valley Industries for $88,500 on January 1, 20X6, when Valley had capital stock of $253,000 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	$	151,000		$	39,000		$	77,000		$	29,000
20X7		94,000			59,000			77,000			49,000
20X8		236,000			10,000			97,000			40,000
20X9		171,000			49,000			107,000			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