On July 1, 2016, Clearwater Inc. purchased 5,600 shares of the outstanding common stock of Mountain Corporation at a cost of $136,000. Mountain had 28,000 shares of outstanding common stock. The total book value and total fair value of Mountains individual net assets on July 1, 2016, are both $680,000. The total fair value of the 28,000 shares of Mountains common stock on December 31, 2016, is $750,000. Both companies have a January through December fiscal year. The following data pertains to Mountain Corporation during 2016: Dividends declared and paid, Jan. 1Jun. 30 $ 11,800 Dividends declared and paid, Jul. 1Dec. 31 $ 11,800 Net income, January 1June 30 $ 13,800 Net income, July 1December 31 $ 17,800 Required: 1. Prepare the necessary entries for 2016 under the equity method (other than for the purchase). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)