Sage Hill Company purchased 29,400 shares of common stock of Paxton Corporation for $756,000. During the year, Paxton Corporation reported net income of $330,000 and paid dividends of $110,000. (a) Assuming that the 29,400 shares represent a 10% interest in Paxton Corporation: 1. Prepare the journal entry to record the investment in Paxton stock. 2. Prepare any entries that Sage Hill Company should make in accounting for its investment in Paxton stock during the year. 3. What is the balance of the Stock Investments account on Sage Hill Company's books at the end of the year? (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) No. Account Titles and Explanation Debit Credit 1. 2. Cost Method 3. Stock Investments account balance $