Problem 7 On January 1, 2014, Mica Company purchased 40% of Santos Corporation 500,000 outstanding shares of common stock at a total cost of $13 per share. On October 25, Santos declared and paid a cash dividend of $0.40 per share. On December 31, Santos reported a net income of $860,000 for the year and the market price of its common stock was $14 per share. (Equity method) (a) Prepare all the necessary journal entries in 2014 for this scenario. (account for this investment using equity method) (6 points) Problem 8