On January 1, 2009, Ruark Corporation acquired a 40 percent interest in Batson, Inc., for $210,000. On that date, Batson’s balance sheet disclosed net assets of $360,000. During 2009, Batson reported net income of $80,000 and paid cash dividends of $25,000. Ruark sold inventory costing $30,000 to Batson during 2009 for $40,000. Batson used all of this merchandise in its operations during 2009. Prepare all of Ruark’s 2009 journal entries to apply the equity method to this investment.