Roller Corporation purchased 100 percent ownership of Steam Company on January 1, 20X5, for $276,000 On that date, the book value of Steams reported net assets was $211,000 The excess over book value paid is attributable to depreciable assets with a remaining useful life of 5 years Net income and dividend payments of Steam in the following periods were Year Net Income Dividends 20X5 $ 24,000 $ 13,000 20X6 44,000 23,000 20X7 24,000 42,000 Required a Prepare journal entries on Roller Corporations books relating to its investment in Steam Company for each of the three years, assuming it accounts for the investment using the cost method (If no entry is required for a transaction event, select No journal entry required in the first account field ) b Prepare journal entries on Roller Corporations books relating to its investment in Steam Company for each of the three years, assuming it accounts for the investment using the equity method (If no entry is required for a transaction event, select No journal entry required in the first account field )

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Roller Corporation purchased 100 percent ownership of Steam Company on January 1, 20X5, for $276,000. On that date, the book value of Steams reported net

Roller Corporation purchased 100 percent ownership of Steam Company on January 1, 20X5, for $276,000. On that date, the book value of Steams reported net assets was $211,000. The excess over book value paid is attributable to depreciable assets with a remaining useful life of 5 years. Net income and dividend payments of Steam in the following periods were

Year	Net Income		Dividends
20X5	$	24,000	$	13,000
20X6		44,000		23,000
20X7		24,000		42,000

Required:
a.	Prepare journal entries on Roller Corporations books relating to its investment in Steam Company for each of the three years, assuming it accounts for the investment using the cost method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

b.	Prepare journal entries on Roller Corporations books relating to its investment in Steam Company for each of the three years, assuming it accounts for the investment using the equity-method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)