Gant Company purchased 20 percent of the outstanding shares of Temp Company for $70,000 on January 1, 20X6. The following results are reported for Temp Company:

Required
Determine the amounts reported by Gant as income from its investment in Temp for each year and the balance in Gant€™s investment in Temp at the end of each year assuming that Gant uses the following methods in accounting for its investment in Temp:
a. Cost method.
b. Equity method
c. Fair valuemethod.

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20X6 20X7 20X8 Net income Dividends paid Fair value of shares held by Gant: $40,000 $35,000 $60,000 30,000 15,000 20,000 January 1 December 31 70,000 89,000 89,000 86,000 86,000 97,000