PROBLEMS Problem 5-1 (02) Eliminations, equity, 100%, bonds with straight-line. Since I 100% acquisition of Dancer Corporation stock on December 31, 2012, Jones Corporation maintained its investment under the equity method. However, due to Dancer's earnin tial, the price included a $40,000 payment for goodwill. At the time of the purchase, the f value of Dancer's assets equaled their book value g poten- On January 2, 2014, Dancer Corporation issued 10-year, 7% bonds at a face va u $50,00 tized on a account. Below are the trial balances of both companies on December 0. The bonds pay interest each December 31. On January 2, 2016, Jones Corporati Il of Dancer Corporation's outstanding bonds for $48,000. The discount is amor straight-line basis. They have been included in Jones's long-term investment in bonds 31, 2016 ones Dancer Cash Accounts Receivable Inventory Investment in Bonds Corporation Corporatio 67,500 75,000 65,000 70,500 450,000 200,000 48,250 .. .. . 2,420,000 196,000 350,000 Investment in Dancer Corporation Accounts Payable ..(275,000) (18,000 (50,000] Common Stock($10 par)-Jones. . . PaidIn Capital in Excess of Par-Jones.. . Retained Earnings, January 1, 2016-Jones (1,000,000) 750,000) 730,000) (100,000 Paid-In Capital in Excess of Par-Dancer Retained Earnings, January 1, 2016-Dancer.... Sales (130,000] (80,000) ...(2,500,000) (540,000] 1,000,000 405,000 106,000 720,000 3,750 0 0 Other Expenses 3,500 Totals