80% acquition

IERCISE6 4) Sophisticated equity method, second year, eiiminations, state- ments. T are presented as follows: he trial balances of Pepper and Salt companies of Exercise 5 for December 31, 20X2, Salt 115,000 200,000 130,000 (40,000) Pepper 152,000 400,000 Accumulated Depreciation Investment in Salt Company Current Liabilities Common Stock ($10 par) Retained Earnings, January 1, 20X2 260,000 (80,000) (300,000 100,000) 255,000 (170,000) 200,000) 100,000) 85,000 ales 160,000 (7,000) Expenses . .. Subsidiary Income (from Salt Company). . Dividends Declared.... 10,000 Total 0 0 Pepper Company continued to use the sophisticated equity method worksheet. related income distribution schedules 1. Prepare all the eliminations and adjustments that would be made on the 2. If you did not solve Exercise 4, prepare the 20X2 consolidated income statement and its