2.(40 points) P Company purchased 70% of Prairie Co for $696,000 cash on 1/1/2019. Balance sheets for P Company and S Company immediately prior to the combination were as follows: P Co SCO BV BV FV Current Assets $1,314,000 $192,000 $192,000 Land 540,000 308,000 326,000 Building and Equipment (net) 1,185,000 100,000 100,000 Total 3,039,000 600,000 618,000 150,000 Liabilities Common Stock, $20 par value Other Contributed Capital Retained Earnings Total $900,000 1,650,000 218,000 271,000 $3,039,000 $150,000 240,000 60,000 150,000 600,000 a. Prepare computation and allocation of difference between implied and book values. b. Provide eliminating entry on 1/1/2019 to create consolidated balance sheet. c. Prepare consolidated balance sheet on 1/1/2019. YEAR Net income Dividend 2020 $30,000 $12,000 Sco 2021 $40,000 $15,000 2022 -$40,000 $18,000 d. Assuming the P company uses cost method, provide eliminating entries for 2022