On January $1,20$X$5,$ Cale Corp. paid $$1,020,000$ to acquire Kaltop Co$.$ Kaltop maintained separate incorporation.$$ Cale used the equity method to account for the investment.$$ The following information is available for Kaltop's assets, liabilities, and stockholders' equity accounts on January $1,20$X$5$:

$$

$$

Book Value

Fair Value

Current assets

$$120,000$

$$120,000$

Land

$72,000$

$192,000$

Building $($twenty year life$)$

$240,000$

$268,000$

Equipment $($ten year life$)$

$540,000$

$516,000$

Current liabilities

$24,000$

$24,000$

Long $-$term liabilities

$120,000$

$120,000$

Common stock

$228,000$

$$

Additional paid $-$in capital

$384,000$

$$

Retained earnings

$216,000$

$$

$$

Kaltop earned net income for $20$X$5$ of $$126,000$ and paid dividends of $$48,000$ during the year.

$$

Required Formatting for Entry of Your Answer:

Numbers, put $,$ comma where necessary. Minus sign for negative numbers. No dollar signs. Example: $-5,000,000$

For names, no abbreviations and type in UPPERCASE. Example: DEBIT, CREDIT, GOODWILL, ACCOUNTS PAYABLE.

Required for Year End $20$X$5$:

Item A: Calculate the excess amortization?

Item B: Calculate the equity in earnings $($Income account$)$ at December $31,20$X$5?$

Item C: In Entry A$,$ What is the impact on EQUIPMENT in the following$$condensed consolidation entry at December $31,20$X$5?$