Question 4 1 pts On January 1, 2014, Jabba Inc. paid $1,000,000 for a 35% ownership interest in Hutt Corporation. As a result of the purchase, Jabba has significant influence over Hutt. During the calendar year 2014, Hutt reported net income of $300,000 and paid dividends of $30,000. Jabba recorded these transactions using the equity method. What is the ending balance of the Investment in Hutt account on Jabba's statement of financial position at its Dec 31, 2014 year end? O 1.105,000 O 1,094,500 O 1.115.500 O 1,075,000 Question 6 1 pts An investment that is intended to be held for three years should generally be classified as ain) Controlled investment O Temporary investment Long term asset O Equity investment 7 Question 21 1 pts Tessari, Ltd. is a calendar-year corporation. Its financial statements for the years 2011 and 2010 contained errors as follows: 2011 2010 Ending inventory $4,000 overstated $7,000 overstated Depreciation Expense $2,000 understated $8,000 overstated Assume that the proper correcting entries were made at December 31, 2010. By how much will 2011 net income be overstated or understated? $6,000 overstated O $2,000 overstated $4.000 overstated $2,000 understated $1.000 understated