BROWN co. purchased 30,000 shares of common stock, representing 30% ownership interest of BOBCATS

P2. On January 2, 2015, BROWN co. purchased 30,000 shares of common stock, representing 30% ownership interest of BOBCATS co., for $1,200,000. In January 2016, BOBCATS reported net income of $400,000 for the year 2015 and declared and paid cash dividends of $150,000.Instructions: Using the equity method, prepare any necessary journal entries of BROWN fora. the purchase of the common stocks on 1/2/2015.b. its share in BOBCATS’ net income for 2015.c. dividends payments in 2016.