Entries for equity investments: 20%50% ownership: At a total cost of $1,857,600, Herrera Corporation acquired 108,000 shares of Tran Corp. common stock as a long-tem investment. Tran Corp. has 300,000 shares of common stock outstanding, Inctuding the shares scquired by Herrera Corporation. a. Journalize the entries by Herrera Corporation to record the following information: If an arnount box does not require an entry, leave it blank. 1. Tran Corp. reports net income of $3,340,000 for the current period. 2. A cash dividend of $1.60 per common share is paid by Tran Corp, during the current period. b. Why is the equity methed appropeiste for the Tran Cerp. investment? An investment amesint of the outstanding common stock of the investee is presumed te represent significant influence. The equity method if appropriate when the investor exercise significant infuence over the investee