QUESTION 11 Please use the following question to answer questions 14-20 On January 1, 2010, P Company purchased an 80% interest in s Company for $900,000. At that time, 5 Company had capital stock of $600,000 and retained earnings of $100,000. Differences between the fair value and the book value of the identifiable assets of Salem Company were as follows: Fair value in Excess of Book Value Equipment Land $ 180,000 20,000 20,000 Inventory The book values of all other assets and liabilities of Company were equal to their fair values on January 1, 2010. The equipment had a remaining life of five years. The inventory was sold in 2010. S Company's net income and dividends declared in 2010 Net Income of 5120,000; Dividends Declared of $30,000 14. Prepare JE at date of purchase QUESTION 12 15. Prepare W/P at date of purchase to eliminate the equity of S and investment of P (see above question) TTT Arial 3 (12pt) Word Path:p QUESTION 13 16. Prepare W/P to allocate the differences (see above question) QUESTION 14 17. Prepare JE under cost method for Ni and Dividends (see above question) TT T Arial 3 (12pt) Words Pathop QUESTION 15 18. Prepare W/P entries to eliminate Dividends and convert cost to equity (see above question) TTT Arial 3(12pt) - T.EE .........Al Ano alla QUESTION 16 19. Prepare W/P entry to eliminate the equity of Sand investment of Pat 12/31 (see above question) TTT Arial 3 (12pt) gi T. Words Path: P QUESTION 17 20. Prepare W/P to allocate differences (all inventory has been sold), and the extra depreciation entry (see above question) TTT Arial 3 (12) T.EE