The accounts of Pyle Company and its subsidiary. Stem Company, are summarized below as of December 31, . 2014: Pyle Company made the following open - market purchase and sale of Stem Company common stock: January 2, 2012, purchased 51,000 shares (85% of Stern), cost $510,000, $10/share; January 1, 2014 sold 40,000 shares (two-thirds of Stem), proceeds, $480,000, $12/share. The book value of Stem Company's net assets on January 2, 2012, $600,000, approximated the fair value of those net assets, including retained earnings of $120,000. Subsequent changes in book value of the net assets are entirely attributable to earnings of Stem Company. Stem Company earns its income evenly throughout the year. Prepare the journal entries needed on Pyle Company's books to record the transactions regarding the investment in Stem Company account assuming that the cost method is used to account for the investment. (Round intermediate calculations to 5 decimal places, e.g. 1.24687 and final answers to 0 decimal places, e.g. 5, 125. Credit account titles are automatically Indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)