Question

Quiz for On July 1,2018, Clearwater Inc. purchased 5,750 shares of the outstanding $157.500 Mountain had 23,000 shares of outstanding net assets on July 1. 2018, are both $630,000. The total fair value of the 23,000 shares of Mountain's common stock on l 2018, is $725,000. Both companies have a January through December fiscal year The following data pertains to Mountain Corporation during 2018 common stock of Mountain Corporation at a cost of common stock. The total book value and total fair value of Mountain's individual 2 Dividends declared and paid, Jan. 1-Jun. 30 Dividends declared and paid, Jul. 1-Dec. 31 $11,300 $11,300 Net income, January 1-June 30 Net income, July 1-December 3 $13, 300 $17,300 1. Prepare the necessary entries for 2018 under the equity method 2. Prepare any necessary entries for 2018 (other than for the purchase) that would be required if the securities were accounted for under the fair value through net income method net incorne method. (If no entry is required for a transaction/event, select “No journal entry Journal entry worksheet