Equity Method for Stock Investment At a total cost of \$1,918,000, Herrera Corporation acquired 140,000 shares of Tran Corp. common stock as a long-term investment. Herrera Corporation uses th. method of accounting for this investment. Tran Corp, has 400,000 shares of common stock outstanding, including the shares acquired by Herrera Corporation. a. Journalize the entries by Herrera Corporation to record the following information: 1. Tran Corp. reports net income of $3,450,000 for the current period