3. (15 points) On January 1, 2025, Pluto Company purchased a 90% interest in Saturn Company...

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3. (15 points) On January 1, 2025, Pluto Company purchased a 90% interest in Saturn Company for $2,800,000. At that time, Saturn had $1,840,000 of common stock and $360,000 of retained earnings. The difference between implied and book value was allocated to the following assets of Saturn Company: Inventory Plant and equipment (net) Goodwill $ 80,000 240,000 591,111 The plant and equipment had a 10-year remaining useful life on January 1, 2025. During 2025, Pluto sold merchandise to Saturn at a 20% markup above cost. At December 31, 2025, Saturn still had $180,000 of merchandise in its inventory that it had purchased from Pluto. In 2025, Pluto reported net income from independent operations of $1,600,000, while Saturn reported net income of $600,000. Required: A. Prepare the workpaper entry to allocate, amortize, and depreciate the difference between implied and book value for 2025. B. Calculate controlling interest in consolidated net income for 2025. 3. (15 points) On January 1, 2025, Pluto Company purchased a 90% interest in Saturn Company for $2,800,000. At that time, Saturn had $1,840,000 of common stock and $360,000 of retained earnings. The difference between implied and book value was allocated to the following assets of Saturn Company: Inventory Plant and equipment (net) Goodwill $ 80,000 240,000 591,111 The plant and equipment had a 10-year remaining useful life on January 1, 2025. During 2025, Pluto sold merchandise to Saturn at a 20% markup above cost. At December 31, 2025, Saturn still had $180,000 of merchandise in its inventory that it had purchased from Pluto. In 2025, Pluto reported net income from independent operations of $1,600,000, while Saturn reported net income of $600,000. Required: A. Prepare the workpaper entry to allocate, amortize, and depreciate the difference between implied and book value for 2025. B. Calculate controlling interest in consolidated net income for 2025.