The Paris Company purchased an 80% interest in Seine, Inc. for $600,000 on January 1, 20X1, when Seine had the following balance sheet:

Assets
Accounts receivable	50,000
Inventory	120,000
Land	80,000
Building	270,000
Equipment	80,000
Total	$600,000
Liabilities and Equity
Current liabilities	$100,000
Common stock, $5 par	50,000
Paid-in capital in excess of par	150,000
Retained earnings	300,000
Total	$600,000

The inventory has a total fair value of $140,000 (is $20,000 greater than book value) and is sold during 20X1. The building has a total fair value of $320,000 and a 10-year remaining life. The equipment has a total fair value of $120,000 and a remaining life of 5 years. Any remaining excess is attributed to goodwill.

From January 1 through December 31, 20X1, Seine had a reported net income of $100,000 and paid $10,000 in dividends.

Required:

Prepare the entries on the books of Paris for the year ended December 31, 20X1 using the simple equity method.

Prepare the entries on the books of Paris for the year ended December 31, 20X1 using the sophisticated equity method.