Small Company reported 2017 net income of $300,000 and paid dividends of $90,000 during the year. Parker Inc. acquired 20% of Small's outstanding voting stock on January 1, 2017 for $630,000. At December 31, 2017, Parker determined the fair value of the shares in small to be $615,000. Parker reported operating income of $540,000.

instructions: Compute Parker's net income for 2017 assuming it uses the following methods to account for its investment.

a. equity method in accounting for its investment in Small

b. fair value method in accounting for its investment in Small