On January 1, Jefferson Company acquired 25% of the outstanding voting shares of Tremont Corporation at a cost of $ 1,340,000 by acquiring 20,000 of the total 80,000 outstanding shares at a cost of $ 67 per share. During the year, Tremont reported $ 875,000 in net income and declared and paid $ 3.75 per share dividends. At acquisition, Tremont’s market value equaled the book value of its net assets. Prepare the journal entries required to record the above events assuming that Jefferson uses the equity method to account for its investment in Tremont.