E17-13B (Equity Method) Parent Co. invested $5,000,000 in Sub Co. for 30% of its outstanding stock. At the time of the purchase, Sub Co. had a book value of $15,000,000. Sub Co. pays out 75% of net income in dividends each year. Instructions Use the infor

E17-13B (Equity Method) Parent Co. invested $5,000,000 in Sub Co. for 30% of its outstanding stock. At the time of the purchase, Sub Co. had a book value of $15,000,000. Sub Co. pays out 75% of net income in dividends each year.
Instructions
Use the information in the following T-account for the investment in Sub to answer the following
questions.
                                                           Investment in Sub Co.
                                                       5,000,000
                                                          360,000
                                                                                   270,000
(a) How much was Parent Co.’s share of Sub Co.’s net income for the year?
(b) How much was Parent Co.’s share of Sub Co.’s dividends for the year?
(c) What was Sub Co.’s total net income for the year?
(d) What was Sub Co.’s total dividends for the year?