Exercise 4-1 Percy Company purchased 80% of the outstanding voting shares of Song Company at the beginning of 2014 for $401,100. At the time of purchase, Song Company's total stockholders' equity amounted to $470,900. Income and dividend distributions for Song Company from 2014 through 2016 are as follows: 2014 2015 2016 Net Income (loss) $63,900 $53,000 ($56,500) Dividend distribution 25,600 50,700 33,900 Prepare journal entries on the books of Percy Company from the date of purchase through 2016 to account for its investment in Song Company under each of the following assumptions: (a) Percy Company uses the cost method to record its investment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation 2014 2015 2016 (To record the investment in Song Company) (To record dividend income) Debit Credit