Exercise 5-9 (Static) Majority-Owned Subsidiary with Differential LO 5-2 Server Corporation is a majority-owned subsidiary of.Proxy Corporation. Proxy acqulred 75 percent ownership on January 1, 20x3, for $133,500, At that date, Server reported common stock outstanding of $60,000 and retained earnings of $90,000, and the fair value of the noncontrolling interest was $44,500. The differential is assigned to equipment, which had a falr value $28,000 more than book value and a remaining economic life of seven years at the date of the business combination. Server reported net income of $30,000 and paid dividends of $12,000 in 203. Required: a. Prepare the journal entries recorded by Proxy during 203, on its books if it accounts for its investment in Server using the equity method: Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. A Record the initial investmeot in Server Corporation A Record Proxy Corporation's 75% share of Server Corporation's 203 income. C. Record Proxy Corp.'s 75% share of Server Corporation's 203 dividend. D. Record Proxy Corporation's 75% share of the amortization of the excess acquisition price. Note : - Joumal entry has been entered