Policies True false Help Save& Exit Submit Check my work Ravine Corporation purchased 40 percent ownership of Valley Industries for $126,800 on January 1, 20x6, when Valley had capital stock of $257000 and retained earnings of $60,000. During the period of January 1 20X6 through December 31, 20X9, the market value of Ravine's investment in Valley's stock increased by $L000 each year. The following data were reported by the companies for the years 20x6 through 20x9 Operating Incone, Net Inocome Valley Industries 36,000 56,000 10,000 46,000 Ravine 86,000 86,000 106,000 116,000 Valley 20x6 0x7 20x8 20x9 151,000 4,000 37,000 171,000 26,000 46,000 40,000 26,000 Required: what net income would Ravine Corporation have reported for each of the years, assuming Ravine accounts for the intercorporate investment either by carrying the investment at fair value, or by usi equity method? b 1 Give all appropriate journal entries for 20x8 that Ravine would make if it carries the investment at fair value b 2. Give all appropriate joumal entries for 20X8 that Ravine would make if it uses the equity method Complete this question by entering your answers in the tabs belovw Required A Required B1 Required 82 What net income would Ravine Corporation have reported for each of the years, assuming Ravine accounts for intercorporate investment either by carrying the investment at fair value, or by using the equity method?