Workpaper Entries Park Company acquires an 85% interest in Sunland Company on January 2, 2005. The resulting difference between cost and book value in the amount of $120,000 is entirely attributable to equipment with an original life of 15 years and a remaining useful life, on January 2, 2005, of 10 years. LO2 Required:
Prepare the December 31 consolidated financial statements workpaper entries for 2005 and 2006 to allocate and depreciate the difference between cost and book value, recording accumulated depreciation as a separate balance.