Show me the steps to solve

Briefly explain the difference between the cost method, the equity method, and the fair value method. Explain the advantages and disadvantages of each method.

Once this has been completed, select one of the methods $($either the cost method, the equity method, or the fair value$)$ and complete the following:

Prepare three tables and determine the amounts reported by A Company as income from its investment in B Company for each year and the balance in A Company's investment in B Company at the end of each year using each of the three methods.

Company A purchased $20$ percent of the outstanding shares of B Company for $$70,000$ on January $1,20$X$6.$ The following results reported for Company B:

$2016$

Net Income $20,000$

Dividends Paid $7,000$

fair value of shares:

Jan $135,000$

Dec $3144,000$

$2017$

Net Income $15,000$

Dividends Paid $15,000$

Fair value of shares:

Jan $144,000$

Dec $3143,000$

$2018$

Net Income $30,000$

Dividends Paid $10,000$

Fair Value of shares:

Jan $143,000$

Dec $3148,000$