Ravine Corporation purchased 40 percent ownership of Valley Industries for $116,800 on January 1, 20X6, when Valley had capital stock of $251,000 and retained earnings of $41,000. The following data were reported by the companies for the years 20X6 through 20X9:

							Dividends Declared
Year	Operating Income,			Net Income,			Ravine			Valley
	Ravine Corporation			Valley Industries
20X6	$	156,000		$	32,000		$	72,000		$	22,000
20X7		81,000			52,000			72,000			42,000
20X8		231,000			10,000			92,000			40,000
20X9		176,000			42,000			102,000			22,000

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.)