Entries for equity investments: 20%-50% ownership At a total cost of $1,176,000, Herrera Corporation acquired 105,000 shares of Tren Corp. common stock as a long-term investment. Tron Corp. nes 300.000 shares of common stock outstanding, including the shares acquired by Herrera Corporation a. Joumalize the entries by Herrera Corporation to record the following information: If an amount box does not require an entry, teave blank 1. Tran Corp. reports net income of $2,120,000 for the current penod. Investment in Tran Corp. Stock Income of Tran Corp 2. A cash dividend or $1.80 per common share is paid by Tran Corp, during the current period Cash Investment in Tran Corp. Stock b. Why is the equity method appropriate for the Tran Corp, investment? An investment amount method is appropriate when the investor of the outstanding common stock of the investee is presumed to represent significant influence. The equity exercise significant influence over the investee. Previous Next