Capital Corporation purchased 40 percent of Cook Company's stock on January 1, 20X4, for $136,000. On that date, Cook reported net assets of $300,000 valued at historical cost and $340,000 stated at fair value. The difference was due to the increased value of buildings with a remaining life of 10 years. During 20X4 and 20X5 Cook reported net income of $10,000 and $20,000 and paid dividends of $6,000 and $9,000, respectively.

Required 

Assuming that Capital Corporation uses 

(a) The equity method 

(b) The cost method in accounting for its ownership of Cook Company, give the journal entries that Capital recorded in 20X4 and 20X5.