P6-2 Upstream and downstream sale of depreciable asset Jenna OYJ was a 90 percent-owned subsidiary of Mikko OYJ and was acquired in 2012. At the acquisition date, any fair value/book value differences were due to goodwill. Separate trial balances for both companies for the year ended in 2014 were as follows:

Debits Mikko OYJ Jenna OYJ Cash $ 1,000 $ 800 Accounts receivable 1,200 400 Inventory 1,400 800 Land 600 300 Equipment-net 1,900 1,400 Building-net 3,000 2,000 Investment in Jenna OYJ 2,790 0 Cost of sales 5,000 3,500 Other expenses 1,000 800 Dividends 500 200 Total $ 18,390 $ 10,200 Credits Accounts payable $ 1,300 $ 1,000 Common stock 6,000 2,000 Retained Earnings 3,290 1,000 Sales 7,300 6,000 Gain on sale of equipment 0 200 Gain on sale of building 500 0 Total $ 18,390 $ 10,200 ADDITIONAL INFORMATION