3) Pollek Corporation paid $16,200 for a 90% interest in Swamp Corporation on January 1, 2013, when Swamp stockholders' equity consisted of $10,000 Capital Stock and $3,000 of Retained Earnings. The excess cost over book value was attributable to goodwill.

Additional information:

1.Pollek sells merchandise to Swamp at 120% of Pollek's cost. During 2013, Pollek's sales to Swamp were $4,800, of which half of the merchandise remained in Swamp's inventory at December 31, 2013.(The 2013 ending inventory was sold in 2014.) During 2014, Pollek's sales to Swamp were $6,000 of which 60% remained in Swamp's inventory at December 31, 2014. At year-end 2014, Swamp owed Pollek $1,500 for the inventory purchased during 2014.

2.Pollek Corporation sold equipment with a book value of $2,000 and a remaining useful life of four years and no salvage value to Swamp Corporation on January 1, 2014 for $2,800.Straight-line depreciation is used.

3.Separate company financial statements for Pollek Corporation and Subsidiary at December 31, 2014 are summarized in the first two columns of the consolidation working papers.

4.The following information is available for 2013:

Swamp's income$4,000

Swamp's dividends received by Pollek$1,800

Please make the journal entries for each questions.