$ 155,000 70,000 200,000 300,000 $ 75,000 35,000 50,000 50,000 Accounts Payable Mortgages Payable Common Stock Retained Earnings 290,000 100,000 Sales 700,000 400,000 Income from Subsidiary 45,000 $1,760,000 $1,760,000 $710,000 $710,000 Additional Information 1. On January 1, 20X7, Granite reported net assets with a book value of $150,000 and a fair value of $191,250. Accumulated depreciation on Buildings and Equipment was $60,000 on the acquisition date. 2 Granite's depreciable assets had an estimated economic life of 11 years on the date of combination. The difference between fair value and book value of Granite's net assets is related entirely to buildings and equipment 3. Mortar used the equity method in accounting for its investment in Granite. 4. Detailed analysis of receivables and payables showed that Granite owed Mortar $16,000 on December 31, 20X7 Required a Give all journal entries recorded by Mortar with regard to its investment in Granite during 20x7