Wren Inc., a public company, owns 20% of Dong Ltd.’s common shares for strategic purposes. The investment’s carrying amount at January 1, 2024, is $300,000. During the year, Dong reported profit of $250,000 and paid a dividend of $20,000. The investment’s fair value on December 31, 2024, Wren’s year end, is $315,000. 

a. Assuming Wren has significant influence over Dong, indicate the amount reported on the balance sheet for the investment at December 31 and the amount of income from this investment reported in the income statement. 

b. Assume instead that Wren is a private company and reports the investment using cost. Indicate the amount reported on the balance sheet for the investment at December 31 and the amount of income from this investment reported in the income statement.