On July 1, 2021, Clearwater Inc. purchased 9,250 shares of the outstanding common stock of Mountain Corporation at a cost of $192,500. Mountain had 37,000 shares of outstanding common stock. The total book value and total fair value of Mountain's individual net assets on July 1, 2021, are both $770,000. The total fair value of the 37,000 shares of Mountain's common stock on December 31, 2021, is $815,000. Both companies have a January through December fiscal year. The following data pertains to Mountain Corporation during 2021: Dividends declared and paid, January 1-June 30 Dividends declared and paid, July 1-December 31 $ 12,700 $ 12,700 Net income, January 1-June 30 Net income, July 1-December 31 $14,700 $ 18,700 Required: 1. Prepare the necessary entries for 2021 under the equity method (other than for the purchase). 2. Prepare any necessary entries for 2021 (other than for the purchase) that would be required if the securities were accounted for under the fair value through net income method. Required 1 Required 2 Prepare the necessary entries for 2021 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.) View transaction list X > 1 Record the entry for cash dividend received under the equity method. 2 Record the entry for investment revenue under the equity method. 3 Record the unrealized gain or loss for securities available for sale. Credit Required 1 Required 2 Prepare any necessary entries for 2021 (other than for the purchase) that would be required if the securities were accounted for under the fair value through net income method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list X > 1 Record the entry for cash dividend received under the equity method. 2 Record the entry for cash dividend received for securities available for sale. 3 Record the unrealized gain or loss for securities available for sale