Equity method vs Fair Value Method $($MC $17$ & $18)$

On January $1,2022,$ an investor purchases for $$300,000$ a $205$ ownership in an investee. On Jan. $1,2022,$ the book value of the investee's assets and liabilities equals $$1,850,000$ and $$350,000,$ respectively. On that date, the appraised fair values of the investee's identifiable net assets approximated the recorded book values.

During the year ended Dec. $31,2022,$ the investee company reported net income equal to $$100,000$ and dividends equal to $$30,000.$ On Dec. $31,2022,$ the fair value of the investor's share of the investee is $$400,000.$

A$.1.$ If the investor CANNOT exert significant influence over the investee, what method must the investor use to record the investment? Fairvotue

$2.$ Make the journal entries for the $2022$ year.

$3.$ What is the balance in the investment account.

B$.1.$ If the investor CAN exert significant influence over the investee, what method must the investor use to record the investment?

$2.$ Make the journal entries for the $2022$ year.

$3.$ What is the balance in the investment account.