Exercise 1 (LO 1) Investment recording methods. Santos Corporation is considering investing in Fenco Corporation, but is unsure about what level of ownership should be underta- ken. Santos and Fenco have the following reported incomes: Sales Costofgoodssold Grossprofit Selling and administrative expenses . . . Netincome Santos $700,000 300,000 $400,000 120,000 $280,000 Fenco $450,000 300,000 $150,000 80,000 $ 70,000