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On July 1, 2021. Clearwater Inc purchased 9,500 shares of the outstanding common stock of Mountain Corporation at a cost of $195,000. Mountain had 38,000

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On July 1, 2021. Clearwater Inc purchased 9,500 shares of the outstanding common stock of Mountain Corporation at a cost of $195,000. Mountain had 38,000 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 $780,000. The total fair value of the 38,000 shares of Mountain's common stock on December 31, 2021, is $820.000. 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 Net income, January 1-June 30 Net income, July 1-December 31 $12,820 512,800 $14,800 $18,800 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the necessary entries for 2021 under the equity method (other than for the purchase) (if no untry is required for a transaction/event, select "No journal entry required in the first account hela.) View transaction lit Journal entry worksheet :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 fair value adjustment. Note : = journal entry has been entered Required 1 Required 2 Prepare any necessary entries for 2021 (other than for the purchase) that w the fair value through net income method. (If no entry is required for a trans account field.) View transaction list X 1 Record the entry for cash dividend received under the fair value through net income method. gh 2 Record the entry for investment revenue under the fair value through net income method. 3 Record the fair value adjustment. Note : journal entry has been entered Record entry Clear entry View ge

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