rship of Toro 0 Requirements the explanat n and leave the for each entry. n the first line of $380,000,000 1. What method should Northwest Motors use to account for the investment in Torque Motors? Give your reasoning. 2. Journalize all required 2018 transactions related to Northwest Motors's Torque investment. Include an explanation for each entry. 3. Post all 2018 transactions to the investment T-account. What is its balance after all the transactions are posted? How would this balance be classified on the balance sheet dated December 31, 2018? Print Done Homework: Chapter 10 Assignment Save Score: 0.07 of 1 pt 3 of 6 (4 complete) HW Score: 19.42%, 1.16 of 6 p %E10-15 (similar to) Question Help Suppose that on January 6, 2018, Northwest Motors paid $380,000,000 for its 40% investment in Torque Motors, Northwest has significant influence over Torque after the purchase. Assume Torque eamed net income of $50,000,000 and paid cash dividends of $55,000,000 to all outstanding stockholders during 2018. (Assume all outstanding stock is voting stock.) Read the requirements Requirement 1. What method should Northwest Motors use to account for the investment in Torque Motors? Give your reasoning Northwest Motors should use the equity method to account for its investment in Torque Motors because the investment represents a 40% ownership of Torque Motors and Northwest Motors has significant influence over Torque Motors Requirement 2. Journalize all required 2018 transactions related to Northwest Motors's Torque investment. Include an explanation for encontry. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. If no entry is required, select "No entry required" on the fort line of the Accounts and Explanation column and leave the remaining cells blank) Northwest Motors paid $380,000,000 for its 40% investment in Torque Motors Date Accounts and Explanation Debit Credit 2018 Jan. 6 Choose from any list or enter any number in the input fields and then click Check Answer A parts 4 remaining Clear All Check