At a total cost of $5,600,000, Herrera Corporation acquired 280,000 shares of Tran Corp. common stock as a long-term investment. Tran Corp. has 800,000 shares of common stock outstanding, including the shares acquired by Herrera Corporation. Required: a. Journalize the entries by Herrera Corporation to record the following information on December 31: 1. Tran Corp. reports net income of $600,000 for the current period 2. A cash dividend of $0.50 per common share is paid by Tran Corp. during the current period." b. Why is the equity method appropriate for the Tran Corp. investment? "Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered Round your intermediate calculations to two decimal places. When required, round final answers to the nearest dollar. b. Why is the equity method appropriate for the Tran Corp. investment? Herrera's investment in Tran Corp. represents of the outstanding shares of Tran Corp. An investment amount between the outstanding common stock of the investee is presumed to represent significant influence. The equity method is exercise significant influence over the investee and when the investor can of