Sun Company purchased 40 percent of Bay Company's common stock on January 1, 2007, at underlying book value of $1,400,000. The separate operating income of Sun Company, the net income of Bay Company, and the dividends for both companies for the first 3 years of ownership are listed below: Sun Company Bay Company ear 2007 2008 2009 erating Income $1,000,000 1,400,000 2,000,000 vidends 80,000 160,000 260,000 et Income $140,000 200,000 100,000 Dividends 40,000 220,000 200,000 Required: a) Compute net income reported by Sun Company for each of the first 3 years of ownership if Sun accounts for its investment using 1) the cost method, and 2) the equity method b) Present all journal entries Sun would record with respect to its investment in Bay for the years 2008 and 2009 if Sun accounts for its investment using 1) the cost method. 2) the equity method