Aragorn, Inc. paid $675,000 for a 25% share of Legolas Corporation on January 1 of the current year. Legolas reported net assets at a book value of $2,400,000 on the date of acquisition. On the date of acquisition, it was determined that Legolas' plant assets were undervalued bye $220,000. Legolas plant assets have a 10-year remaining life and are depreciated by the straight-line method with no residual value. Legolas reported net income of 5320,000 and declared and paid cash dividends of $150,000 during the current year. Finally, Legolas' common share are valued at $3,579,142 at the end of the current year. Required: Compute the amount of goodwill on the exchange, if any, assuming that the equity method is used to account for the investment SD Prepare all journal entries indicated on the books of Aragorn, Inc. under the fair value option and equity methods. Assume Aragorn, Inc. sold the investment for $650,000 on January 1 of the next year. Prepare the journal entries required to record the sale of the investment under both the fair value option and the equity methods Prepare a schedule that compares the mount and timing of the revenue recognition for the fair value option and the equity methods