Percy Company purchased 80% of the outstanding voting shares of Song Company at the beginning of 2014 for $405,800. At the time of purchase, Song Company's total stockholders' equity amounted to $466,400. Income and dividend distributions for Song Company from 2014 through 2016 are as follows:

201420152016Net Income (loss)$62,300$51,900($57,200)Dividend distribution24,70050,60035,900

Prepare journal entries on the books of Percy Company from the date of purchase through 2016 to account for its investment in Song Company under each of the following assumptions:

(a)

Percy Company uses the cost method to record its investment.