Problem
Ocean Corporation purchased 5,000,000 shares of NetCo's common stock, which constitutes 10% of NetCo's voting stock on June 30, 2014 for $44 per share. Ocean's intent is to keep these shares beyond the current year. On December 20, 2014, NetCo paid a $2,000,000 cash dividend. On December 31, 2014, NetCo's stock was trading at $46 per share and their reported 2014 net income was $88 million.
Required:
A. Record the transaction to record the acquisition of NetCo on June 30, 2014.
B. Record the transaction for the dividend received by Ocean on December 20, 2014.
C. Record any year-end entries needed by Ocean Corporation.