1: (12 marks) Socks Inc. purchased 15,000 of the common shares of Boots Inc. on January 1, Year 2 for $150,000. Boots had 100,000 common shares outstanding. During Year 2, Boots had income of $100,000 and paid dividends of $40,000. On December 31, Year 2 the selling price of Boot's shares was $9.00 per share. Socks purchased additional 15,000 common shares of Boots on July 1, Year 3 for $157,500. On that date the net assets of Boots had a carrying value of $900,000 and all of the individual assets of Boots had fair values that were equal to their carrying values except for: Fair Value Carrying value Equipment (remaining life of 4 years) $90,000 $ 50,000 During Year 3, Boots had income of $220,000 earned evenly over the year. On December 31, Boots declared dividends of $60,000. On January 2, Year 4, because of negative market indicators, the market value of Boot's common shares was $8.50 per share and this decline was considered permanent. Assume year end is December 31. Required: Prepare all the journal entries that Socks should prepare regarding this Investment in Boots for Years 2, 3 and on January 2, Year 4. Round to the