Using the information from Exhibit 1.1 (p.8 Chapter 1) below answer questions 1 - 4 below:

EXHIBIT 1.1 Comparison of Fair Value Method (ASC 320) and Equity Method (ASC 323)

				FAIR VALUE					EQUITY METHOD
				Influence Not Significant					Influence Significant
	Little Company			Big Company					Big Company
					Carrying		Fair		Equity in		Carrying
				Dividend	Value		Value		Investee		Value
Year	Income	Dividends		Income	Investment		Adjustment		Income		Investment
2014	$200,000	$50,000		$10,000	$235,000		$35,000		$40,000		$230,000
2015	300,000	100,000		20,000	255,000		55,000		60,000		270,000
2016	400,000	200,000		40,000	320,000		120,000		80,000		310,000
Total income recognized				$70,000					$180,000
											. Prepare the journal entries Big Company would record in fiscal year 2015 if it was using the Fair Value Method to account for its investment in Little Company in the space provided below. Prepare the journal entries Big Company would record in fiscal year 2015 if it was using the Equity Method to account for its investment in Little Company in the space provided below.