Problem 4 Pender Corp. paid $234,000 for a 30 percent interest in Saltspring Limited on January 1, Year 6. During Year 6, Saltspring paid dividends of $ 100,000 and reported prot as follows: Profit before discontinued operations $290,000 Discontinued operations loss (net of tax) 30,000 Profit $260,000 Pender's prot for Year 6 consisted of $900,000 in sales, expenses of $600,000, and its investment income from Saltspring. Required (a) Assume that Pender reports its investment using the equity method. (i) Prepare all journal entries necessary to account for Pender' s investment for Year 6. (ii) Determine the correct balance in Pender's investment account at December 31, Year 6. (iii) Prepare an income statement for Pender for Year 6