a Equity Method Entries on Doorst Corp . 's Books : Investment in Hingle Co . 49, 000 Income from Hingle Co . 49, 000 Record Doorst Corp . 's 70% share of Hingle Co.'s 20 X 8 income Cash 9, 800 Investment in Hingle Co . 9 , 800 Record Doorst Corp .'s 70% share of Hingle Co. 's 20 X 8 dividend Income from Hingle Co . 10 , 000 Investment in Hingle Co . 10 , 000 Eliminate the deferred gross profit from downstream sales in 20* 8 Income from Hingle Co . 28, 000 Investment in Hingle Co. 28 , 000 Eliminate the deferred gross profit from upstream sales in 20X 8