27.On December 31, 2010, Tanner Corp. acquired a 20% interest in Gantry Corp. for $800,000 and appropriately applied the equity method. During 2011, Gantry had net income of $150,000 and paid cash dividends of $5,000. On last day of 2011, Tanner sold one-half of its investment in Gantry Corp. for $620,000. How much should Tanner report on its income statement for the year ending December 31, 2011? Show your work.
28.On January 2, 2011, Merton Co. acquired 30 percent of the outstanding voting common stock of Tilton, Inc., at a cost of $50,000. With this investment, Merton has the ability to exercise significant influence over Tilton, Inc. During 2011, Tilton, Inc. reported net income of $110,000 and paid total cash dividends of $35,000. What amount should be reported as investment and investment earnings by Merton for the year ending December 31, 2011? Show your work.