On January 1, 2015, Red Raiders Corp. acquired 15,000 of the outstanding common stock of Rams Corp. for $600,000. At the time of the purchase, Rams had outstanding 60,000 shares with a book value of $2,400,000. On December 31, 2015 the following events took place:

Rams reported a net loss of $250,000 for the calendar year 2015.

Red Raiders received from Rams a dividend of $0.10 per share of common stock.

The fair value of Rams stock temporarily declined to $38 per share.

Give the entries that would be required to reflect the purchase and subsequent events on the books of Red Raiders assuming that the equity method is appropriate.