Ravine Corporation purchased 40 percent ownership of Valley Industries for $115,600 on January 1, 20X6, when Valley had capital stock of $244,000 and retained earnings of $45,000. During the period of January 1, 20X6, through December 31, 20X9, the market value of Ravine's investment in Valley's stock increased by $11,000 each year. The following data were reported by the companies for the years 20X6 through 20X9: Year 20X6 20X7 20X8 20X9 Required: Operating Income, Ravine Corporation $148,000 89,000 232,000 168,000 Dividends Declared Net Income, Valley Industries $35,000 Ravine Valley $ 87,000 $25,000 55,000 87,000 45,000 10,000 107,000 40,000 45,000 117,000 25,000 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 20X8 that Ravine would make if it uses the equity method