Exercise $15-14($Algo$)$ Accounting for equity method investments LO P$5$

Listed below are a few events and transactions of Kodax Company.

Year $1$

January $2$ Purchased $55,000$ shares of Grecco Company common stock for $$461,000$ cash. Grecco has $165,000$ shares of common stock outstanding, and its activities will be significantly influenced by Kodax.

September $1$ Grecco declared and paid a cash dividend of $$2\mathrm{.}00$ per share.

December $31$ Grecco announced that net income for the year is $$494,400.$

Year $2$

June $1$ Grecco declared and paid a cash dividend of $$1\mathrm{.}10$ per share.

December $31$ Grecco announced that net income for the year is $$712,900.$

December $31$ Kodax sold $11,000$ shares of Grecco for $$142,000$ cash.