Small Company reported 20X7 net income of $50,000 and paid dividends of $6,000 during the year. Mock Corporation acquired 40 percent of Smalls shares on January 1, 20X7, for $96,000. At December 31, 20X7, Mock determined the fair value of the shares of Small to be $133,000. Mock reported operating income of $89,000 for 20X7. Required: Compute Mock's net income for 20X7 assuming it a. Carries the investment in Small at fair value. b. Uses the equity method of accounting for its investment in Small.