182 Seved Harpet Inc, acquires 40 percent of the outstanding voting stock of Kinman Company on January 1, 2020, for $330.200 in cash The book value of Kinmon's net assets on that date was $630.000, although one of the company's buildings with a $68,000 carrying amount was actually worth $125,000. This building had a 10 year remaining life Kinman owned a royalty agreement with a 20-year remaining ife that was undervalued by $138.500. Kinman sold inventory with an original cost of $73,500 to Horper during 2020 at a price of $105,000, Horper still held $22,050 transfer price of this amount in inventory as of December 31 2020. These goods are to be sold to outside parties during 2021. Kirman reported a $45,000 net loss and a $24,600 other comprehensive loss for 2020 The company still manages to declare and pay a $22.000 cash dividend during the year During 2021. Kinmon reported o $53,800 net income and declared and paid a coth dividend of $24,000. It made odditional inventory sales of $92000 to Harper during the period. The original cost of the merchandise was $57,500. All but 30 percent of this inventory had been resold to outside parties by the end of the 2021 fiscal year Prepare journal entries for Harper for 2020 and 2021 in connection with this investment. Assume that the equity method is applied Of no entry is required for a transaction/event, select "No journal entry required in the first account field. Do not round Intermediate calculations.) Journal entry worksheet