On January 4, 2021, Runyan Bakery paid \$324,000 for 10,000 shares of Lavery Labeling Company common stock. The investment represents a 30% interent in the net assets of Lavery and gave. Runyan the abilty to exercise significant influence over Laverys operations. Runyan fecelved dividends of $2.00 per ahare on December 15, 2021, and Lavery reported net income of $1,600,000 for the year ended December 31, 2021. The market value of Lavery's common atock at December 31, 2021, was $31 per share. Required: 1. Prepare all appropriate joumal entries related to the investment during 2021, assuming Runyan accounts for this investment by the equity method, 2. What amount should Runyan report as its income from its investment in Lavery for the year ended Decomber 31, 2021? 3. What amount should Runyan report in tis balance oheot as its investment in Lavery? 4. Prepare the joumal entries required by Runyan, assuming that the 10,000 shares represent a 10% interest in the net assets of Lavery rather than a 30% interest