Reference no: EM131812315

Profound Corporation purchased 24,000 shares, representing 30% ownership, of Simple Company's common stocks in January 20X1 for $360,000 cash. At the date of purchase, Simple had net assets recorded at $1, 200,000. At the end of 20X1 (20X2), Simple's shares were traded at $17 ($14) per share. The companies reported the following operating results and dividends for the two years following the date of purchase: Compute the net income reported by Profound assuming Profound accounts for its investment in Simple (classified as "trading" securities) using the following method: Cost Method: 20X1 $___ 20X2 $___ Equity Method: 20X1 $___ 20X2 $___ Fair Value Method: 20X1 $___ 20X2___