I'm working on a take-home final, and here's one problem I'm having trouble with.  I'll share the other one in a moment.  But here's what I THINK the answer is:

Problem:

Seely Company purchased 42,000 shares of common stock of Otto Corporation as along-term investment for $1,000,000.  During the year, Otto reported Net Income of $300,000 and paid dividends of $100,000.

a. Assuming that the 42,000 shares represent a 15% interest in Otto:

1. Prepare the journal entry to record the investment in Otto stock.

2. Prepare any entries that Seely Company should make in accounting for its investment in Otto stock during the year.

3. What is the balance of the Stock Investments account on Seely Company's books at the end of the year?

b. Repeat requirement (a) above except assume that the 42,000 shares represent a 25% interest in Otto.

MY ANSWERS:

a. Stock Investments Debit 100,000

        Cash Credit 100,000

     Cash Debit 15,000

      Dividend Revenue Credit 15,000

12/31  Stock INvestments Debit 150,000

             Cash Credit 150,000

NOW ON TO REQUIREMENT B:

b.   Stock investments Debit 100,000

        Cash Credit 100,000

Cash Debit 25,000

Dividend Revenue Credit 25,000

Stock INvestments Debit 250,000

    Cash Credit 250,000

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Would I be correct, did I make any errors?  Please help!!!!

TIA!

bump

(Please I'm desperate!!)