At a total cost of $$6,360,000,$ Herrera Corporation acquired $285,000$ shares of Tran Corp. common stock as a long$-$term investment. Tran Corp. has $750,000$ 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 $$802,000$ for the current period.$*$

$2.$ A cash dividend of $$0\mathrm{.}39$ 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. Do not round your intermediate calculations. When required, round final answers to the nearest dollar.