Equity Method and Eliminating Entries Three Years After Acquisition Puttin Industries acquired all of Sunset Coast Digital's stock on January 1, 2014, for 58 750,000 $5.250,000 in excess of book value. At that time. Sunset Coasts inventory CFO) was overvalued by $1,250,000 and its plant assets (10 year life) were overvalued by $2,500,000. The remaining excess of cost over book value is attributed to undervalued identifiable intangle assets being amortised over 20 years. Sunset Coast depreciates plant assets and amortires intangibles by the straight line method. During 2014 and 2015, Sunset Coast reported total net income of 51.625.000 and paid out 50 percent individends Puffin cames its investment in Sunset Coast using the complete equity method. Sunset Coast's inventory increased each year since it was acquired by Puffin, and Sunset Court's reported net income for 2016 won 5500,000, and dividends totaled 50 percent of reported income a compiute Puffin's 2016 equity in net income of Sunset Coast 5 300,000 b. Compute the balance in the investment in Sunset Coast account at December 31, 2016, after all equity method entries have been booked 50 Prepare the working paper eliminating entries needed in consolidation at December 31, 2016 Consolidation Journal Ref. Description Debi Credit C Equity in net income of Sun Cou 300.000 Ovde Sunset Coast O 250.000 Investment in Sunset Coast 50.000 Stockholders Sunset Coast OM 0 investment in Sunset Coast . O OX der Wangibles 100.000 Inventory D 1.250.000 Plant roots het. OV 2.000.000 mentin Sunset Coast D 450.000 OP 250.000 whrmultrnt 450.000 Deprem 250.000 Identitet D 450000