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Lisa Company had outstanding 60,000 shares of common stock. On January 10, 2018, Marg Company purchased a block of these shares in the open market at $12 per share, with the intent of holding the shares for a long time. At the end of 2018, Lisa reported net income of $150,000 and cash dividends of $0.30 per share. At December 31, 2018, Lisa Company stock was selling at $9 per share.

1. 2-a. Prepare the journal entries for Marg Company at the dates indicated for Case A: 8,400 shares purchased.
2. 2-b. Prepare the journal entries for Marg Company at the dates indicated for Case B: 16,800 shares purchased.
3. 3. Complete the following schedule to show the separate amounts that should be reported on the 2018 financial statements of Marg Company: