Mobs named jeb_

I recently learned of the Disco Sheep Easter egg:

Naming a sheep jeb_ using a name tag or a renamed spawn egg will cause it to appear to constantly fade through all colors. When shaved using shears, however, the sheep will bear wool of the original color of the sheep and not the color of the wool that the sheep appears to be.

Does this only work on sheep? Say I do it on a tame wolf, will the collar go through different colors?

If I make a sheep breed with a jeb_ sheep, will the resulting sheep use the original color or current color of jeb_?