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please, fill out these tables below. 32 On July 1, 2021, Clearwater Inc. purchased 6,600 shares of the outstanding common stock of Mountain Corporation at
please, fill out these tables below.
32 On July 1, 2021, Clearwater Inc. purchased 6,600 shares of the outstanding common stock of Mountain Corporation at a cost of $146,000. Clearwater will have significant influence over the financial and operating policies of Mountain. Mountain had 33,000 shares of outstanding common stock. Assume the total book value and fair value of identifiable net assets is $680,000. Both companies have a January through December fiscal year. The following data pertains to Mountain Corporation during 2021: Skipped Dividends declared and paid, January 1-June 30 $12, 300 Dividends declared and paid, July 1-December 31 $12,300 Net income, January 1-June 30 $14,300 Net income, July 1-December 31 $18,300 Required: 1. Prepare the entry to record the original investment in Mountain. 2. Compute the goodwill (if any) on the acquisition. 3. Prepare the necessary entries (other than acquisition) for 2021 under the equity method. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the entry to record the original investment in Mountain. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet 32 Record the entry for original investment in equity affiliate. Skipped Note: Enter debits before credits. General Journal Debit Credit Transaction 1 Skipped Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the goodwill (if any) on the acquisition. Goodwill Complete this question by entering your answers in the tabs below. Skipped Required 1 Required 2 Required 3 Prepare the necessary entries (other than acquisition) for 2021 under the equity method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Skipped Record the entry for cash dividend received under the equity method. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 32 Journal entry worksheet Skipped Record the entry for investment revenue under the equity method. Note: Enter debits before credits. General Journal Debit Credit Transaction 2
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