On January 2, 2024 Ajax purchases 75,000 shares of Comet company for $750,000 representing a 25% stake in Comet. On Comet's books, reported total common shareholder equity is $2,000,000. Based on the 25% stake, the book value of the purchased shares is $500,000. The difference of $250,000 can be attributed to a patent owned by Comet with a remaining life of 10 years. On December 31, 2024 Comet reports net income of $1,500,000. On February 5, 2025, Comet declares and pays a cash dividend of $400,000. Required: Prepare the necessary journal entries for this investment. 36 ACCT 4050 1/28/21