Prepare the journal entries that Kramer Corporation should record for these transactions and events. Please show me the calculations.
Kramer Corporation had the following long-term investment transaction.
Jan 2 Purchased 5000 shares of Optic, Inc. for $42 per share plus $7000 in fees and commission. These shares represent a 35% ownership of Optic.
Oct 15 Received Optic, Inc. cash dividend of $2 per share.
Dec 31 Optic reported a net loss of $66,000 for the year.