Mimics example from Chapter 7B Use the following information for the next three questions Penguin purchased Salt for $240,000 on January 1, 2021. This was 80% of the book value, which was also 80% of the fair value. On December 31, 2021 Salt sold equipment to Penguin for $7,000. Salt had originally purchased the equipment for $9,000, three years before the intercompany sale, estimating it to have a 10 year useful life. For 2021, Salt reported income of $50,700 for 2021, including the gain on the sale to Penguin, and paid $30,000 of dividends Penguin estimates a 7 year remaining life after the purchase 1. Which of the following entries is correct for the basic consolidation entry for 2021? [I know that the Common Stock and Retained Earnings are not separately described in this problem. Think of them together.) 2. What is the Income to Noncontrolling Interest? $50,000 b. $10,140 c. $10,000 d. $50,700 3. In the year, 2022, what equity method adjustment will Penguin make in Penguin's books for the difference in depreciation due to the sale? 4. Stut Co. has a payable to its parent, Planc Co. In which of the following balance sheets should this payable be reported separately? Plane's Strut's consolidated balance sheet balance sheet No No b. Yes Yes c. Yes No d. Yes No a. a