PROBLEMI Rosco Company purchased 35,000 shares of common stock of Paxton Corporation as trading securities for $900,000. During the year, Paxton Corporation reported net income of $300,000 and paid dividends of $100,000. At year end the fair market value of the stock was $1,000,000. Instructions (a) Assuming that the 35,000 shares represent a 10% interest in Paxton Corporation: 1. Prepare the journal entry to record the investment in Paxton stock. 2. Prepare the journal entry to record dividend received for the period. 3. Prepare any year-end adjusting entry. (b) Repeat requirement (a) above except assume that the 35,000 shares represent a 30% interest in Paxton Corporation