Foster Enterprises purchased 20% of the outstanding common stock of Novelties, Inc., on January 2, 2003, paying $150,000. During 2003, Novelties, Inc., reported net income of $20,000 and paid dividends to shareholders of $15,000. On December 31, 2003, Foster’s in- vestment in Novelties stock had a fair market value of $158,000. Assuming this is the only se- curity owned by Foster, prepare all journal entries required by Foster in 2003 assuming: 1. The security is classified as a trading security. 2. The security is classified as an available-for-sale security. 3. The equity method is applied to the investment.