method 2. On January 1, 2011, Ruark Corporation acquired a 37 percent interest in Batson, Inc., for $210,000. On that date, Batson's balance sheet disclosed net assets of $400,000. During 2011, Batson reported net income of 110,000 and paid cash dividends of $70,000. Ruark sold inventory costing $40,000 to Batson during 2011 for $50,000. Batson used $35,000 worth of this merchandise in its operations during 3011. Prepare all of Ruark's 2011 journal entries to apply the equity method to this investment. 1 for $200.000 method 2. On January 1, 2011, Ruark Corporation acquired a 37 percent interest in Batson, Inc., for $210,000. On that date, Batson's balance sheet disclosed net assets of $400,000. During 2011, Batson reported net income of 110,000 and paid cash dividends of $70,000. Ruark sold inventory costing $40,000 to Batson during 2011 for $50,000. Batson used $35,000 worth of this merchandise in its operations during 3011. Prepare all of Ruark's 2011 journal entries to apply the equity method to this investment. 1 for $200.000