On January 1, 2010 Harris pays $300,000 for 6,000 shares of Horton, representing a 2 ownership. Harris has significant influence. During 2010, Horton earns $200,000 and pays dividends of $2 per share. Harris has n 2010. Answer the following: a. How much equity income is recorded by Harris in 2010 b. What is the balance in the Investment in Horton found on Harris books at December 31 1. 5% et income of $500,000 and pays dividends of $300,000 in 2010 On January 1, 2009, Davis acquires 30% of the outstanding common stock of Erdman for $800,000. Davis has significant influence. At that date Erdman had assets with a book value of $5,000,000 and liabilities with a book value of $3,000,000. Any excess of the price paid by Davis over the book value of net assets acquired is attributable to a trademark, which has a remaining life of 5 years. In 2009 Erdman has net income of $200,000 and pays dividends of $80,000. In 2010, Erdman has net income of $150,000 and pays dividends of $60,000. What is the balance of Davis Investment in Erdman at December 31, 2010? 2. on January 1, 2009, Davis acquires 30% of the outstanding common stock of Erdman for $800,000. Davis has significant influence. At that date, Erdman had assets with a book value of $5,000,000 and liabilities with a book value of $3,000,000. Erdman also had equipment with a book value of $200,000 and a fair value of $500,000, with a remaining useful life of 5 years. I 2009 Erdman has net income of $200,000 and pays dividends of $80,000. What is amount of equity income recorded by Davis in 2009? Tolson Corp owns 40% of the voting common shares of Ramos Corp and has significant influence. In 2010, Tolson buys inventory costing $100,000 from third parties and then sells it to Ramos for $150,000. At the end of 2010, Ramos still has $60,000 inventory on hand. What amount of unrealized gross profit must Tolson defer in 2010. Show the required entry and amounts. Dr._$ , Cr $