On January 2, 2018, COYOTE co. purchased 30,000 shares of common stock, representing 40% ownership interest of WILDCATS co., for $1,200,000. In January 2019, WILDCATS reported net income of $400,000 for the year 2018 and declared and paid cash dividends of $150,000.

Instructions: Using the equity method, prepare any necessary journal entries of COYOTE for

1. the purchase of the common stocks on 1/2/2018.
2. its share in WILDCATS' net income for 2018.
3. dividend payments in 2019.