Company P purchases 30% of the outstanding common stock of Company 8 on January 2, 2010 for $400,000 cash. At the time of acquisition, Company 8 had total net assets of $1 ,000,000 fair value (and book value). Note that net assets = assets - liabilities = equity. During 2010, Company 8 reported net income of $300,000 to its shareholders and declared $100,000 dividends to its shareholders. 1. Using the accounting equation demonstrate (on Company P's books) the recording of this investment using the equity method of accounting. 2. Calculate - (a) the value that would he reported in Company P's 12:31:10 balance sheet for the LT. Investment in Company 8 - (b) the Income from Company 8 reported on P's income statement for 2010