Please help me to answer the Required 1 with Indirect and Direct Method. Also show T-accounts for Required 2. Thank you

Exercise 5-10 During the next fiscal year ended June 30, 2020, Alabama Company will be making substantial changes. The company plans to eliminate an investment with Chicago Company, while they will get ready for growth in sales in other product lines. An income statement for the fiscal year ended June 30, 2020 is given below with a comparative balance sheet on June 30, 2020 and June 30, 2019. Alabama Company Income Statement For the Year Ended June 30, 2020 Net sales Cost of sales Operating expenses Interest expense Loss on sale of investment in associates Gain on sale of equipment Unrealized holding loss on trading securities Income tax Total Net income P3,587,000 P2,014,500 538,500 184,000 40,000 (96,000) 100,000 337,500 P3,118,500 P 468,500 Alabama Company Balance Sheets Assets June 30, 2020 June 30, 2019 Current assets: Cash Accounts receivable Trading securities (market) Inventories Prepaid expenses Totals Investment in Associates(cost) Land, plant & equipment: P298,000 P490,250 1,293,750 486,500 300,000 400,000 459,000 767,750 54,500 46,500 P2,405,250 P2,191,000 P 0 P 320,000 Land Buildings (net) P454,000 P163,000 645,000 707,500 Equipment (net) Totals Total Assets 779,750 795.750 P1,878,750 P1,666,250 P4,284,000 P4,177,250