Hart Corporation purchased 350,000 shares of the outstanding common voting stock of Gotti Corporation on January 2, 2021, at a cash cost of $8.00 per share as a short-term investment. At the date of purchase Gotti Corporation had outstanding 1,000,000 shares of common stock (par $1). At year end, December 31, 2021, Gotti reported net income of $200,000 and declared and paid a $50,000 cash dividend. The December 31, 2021, the market value of Gotti's stock was $7.50. Give the journal entries required for Hart Corporation on the following dates:

January 2, 2021:

December 31, 2021: