Problem:
On May 20, 2013, Montero Co. paid $1,000,000 to acquire 40% of ORD Corp.'s outstanding stock. Also assume that ORD Corp. paid a $100,000 dividend on November 1, 2013, and reported a net income of $700,000 for 2013.
Required:
(a) Prepare the entry to record the receipt of the dividend.
(b) Prepare the entry to record the December 31, 2013, year-end adjustment required for the investment account.
Note: Please show the work not just the answer.