Please don't use other answer posted for this problem as I don't think it's correct.

1. (20 pts) Calamari Company purchased 35% of Squid Company for $900,000 in cash on January 1, 2021. On the date of purchase, Squid's book value was $2,000,000. Excess of cost over book value amounting to $30,000 is due to undervalued Equipment and is to be amortized over 4 years. The rest is due to Goodwill. Journalize the following for 2021 on the books of Calamari, assuming Calamari uses the equity method: a. Squid reported a total net income of $800,000. Journalize the recording of the correct income on the books of Calamari. b. Total dividends paid by Squid amounted to $100,000. C. The market value of Calamari's investment in Squid at year end had changed to $960,000. d. Calamari then sold half of its investment in Squid, losing significant influence, for $450,000