Hello my question is in the answer of part 1. QUESTION IS WHERE DOES THE 4000 AND 10,000 COME FROM ?

2) Pike Corporation paid $100,000 for a 10% interest in Salmon Corp. on January 1, 2013, when Salmon's stockholders' equity consisted of $800,000 of $10 par value common stock and $200,000 retained earnings. On December 31, 2014, after receipt of the year's dividends from Salmon, Pike paid $192,000 for an additional 20% interest in Salmon Corp. Both of Pike's investments were made when Salmon's book values equaled their fair values. Salmon's net income and dividends for 2013 and 2014 were as follows:

2013 2014

Net income $60,000 $140,000

Dividends $20,000 $40,000

Required:

1. Prepare journal entries for Pike Corporation to account for its investment in Salmon Corporation for 2013 and 2014.

Pike Corporation Journal Entries for 2013

1/1/2013 Investment in Salmon 100,000

Cash 100,000

12/31/2013 Cash 2,000

Dividend Income 2,000

Pike Corporation Journal Entries for 2014

12/31/2014 Cash 4,000

Dividend Income 4,000

12/31/2014 Investment in Salmon 192,000

Cash 192,000

12/31/2014 Investment in Salmon 14,000

Retained Earnings 14,000

Cost to Equity Basis Adjustment:

Beginning Retained Earnings 1/1/2013 $200,000

Add: Net Income 2013 60,000

Less: Dividends 2013 20,000

Ending Retained Earnings 12/31/2013 $240,000

Beginning Retained Earnings 1/1/2014 $240,000

Add: Net Income 2014 140,000

Less: Dividends 2014 40,000

Ending Retained Earnings 12/31/2013 $340,000

10% of Change in Retained Earnings Since 1/1/2013 ($4,000*10%+$10,000*10%) $ 14,000

QUESTION IS WHERE DOES THE 4000 AND 10,000 COME FROM ?