Accounting 311 Chapter 1 Homework Problems Instructions: Number your paper in the order of the problems. Do not calculations supporting your answer. Circle the number that represents your answer. recopy the problem. Show your On January 1, 2010 Harris pays $300,000 for 6,000 shares of Horton, representing a 2S% ownership. Harris has significant influence. During 2010, Horton earns $200,000 and pays dividends of $2 per share. Harrs has net income of $s0o,000 and pays dividends of $300,000 in 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. 2010. 2Y. 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 3. $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. In 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. $ 4, Cr$