Winston Corporation purchased 40 percent of the stock of Fullbright Company on January 1, 20X2, at underlying book value. During the period of January 1, 20X2, through December 31, 20X4, the market value of Winston's investment in Fullbright's stock increased by $20,000 each year. The companies reported the following operating results and dividend payments during the first three years of intercorporate ownership:

		Winston Corporation								Fullbright Company
Year		Operating Income				Dividends				Net Income				Dividends
20X2		$	100,000			$	40,000			$	70,000			$	30,000
20X3			60,000				80,000				40,000				60,000
20X4			250,000				120,000				25,000				50,000

Required: Compute the net income reported by Winston for each of the three years, assuming it accounts for its investment in Fullbright by carrying the investment at (a) fair value, or (b) using the equity method.

Net Income
Year	Fair Value	Equity Method
20X2
20X3
20X4