On January 1, 2007, Jondy Ltd. acquires 5 percent of the voting shares of Montag Inc. for $785,000. The investment is classified as available for sale. The Montag shares do not trade in an active market. Jondy Ltd. has a December 31 year end. During the year ending December 31, 2007, Montag has Net Income of $700,000 and pays dividends of $500,000. During the year ending December 31, 2008, Montag has Net Income of nil but continues to pay dividends of $500,000. Provide the journal entries to record the preceding information on the books of Jondy Ltd