5. Grecco announced that net income for the year is $720,400.

6. Kodak sold 14,000 shares of Grecco for $125,000 cash.

Exercise 15-12 Accounting for equity method investments LO P5 Listed below are a few events and transactions of Kodax Company. Year 1 Jan. 2 Purchased 85,000 shares of Grecco Co. common stock for $491,000 cash. Grecco has 255,000 shares of common stock outstanding, and its activities will be significantly influenced by Kodax. Sept. 1 Grecco declared and paid a cash dividend of $2.10 per share. Dec. 31 Grecco announced that net income for the year is $498,900. Year 2 June 1 Grecco declared and paid a cash dividend of $2.90 per share. Dec. 31 Grecco announced that net income for the year is $720,400. Dec. 31 Kodax sold 14,000 shares of Grecco for $125,000 cash. Prepare journal entries to record the above transactions and events of Kodax Company. (Do not round intermediate calculations and round your final answers to the nearest dollar amount.)