Account balances are as of December 31, 2018 except where noted. Pipe Match Selected Income Statement Amounts Sales $710,000 $530,000 Cost of Goods Sold 490,000 370,000 21,000 Gain on Sale of Equipment Earnings from Investment in Subsidiary 61,000 Interest Revenue 2,880 Interest Expense 2,880 Depreciation 25,000 20,000 Selected Balance Sheet Amounts (Debits(Credits)}; Cash S 50,000 $ 15,000 36,000 Notes Receivable Inventories 229,000 150,000 360,000 440,000 (200,000) (120,000) 189,000 Equipment Accumulated Depreciation Investment in Shaw Notes Payable Common Stock Additional Paid-In-Capital (36,000) (10,000) (100,000) (250,000) (402,000) (40,000) Retained Earnings (140,000) Retained Earnings (402,000) (140,000) Selected Statement of Retained Farnings Amounts: Beginning Balance, January 1, 2018 $272,000 $100,000 Net Income 210,000 70,000 Dividends Paid 80,000 30,000 Additional Information On January 2, 2018 Pipe purchased 90% of Match for $155,000. On that date Match's shareholders' equity equaled S150,000 and the fair values of Match's assets and liabilities equaled their carrying amounts. Excess, if any, is attributed to patents and is amortized over 10 years. On September 4, 2018 Match paid cash dividends of $30,000 On January 3, 2018 Match sold equipment with an original cost of $30,000 and a carrying value of $15,000 to Pipe for $36,000. The equipment had a remaining weful life of 3 years. Straight-line depreciation is used On January 4, 2018 Match signed an **Note Payable. All interest payments were made us of December 31, 2018 During the year Match sold merchandise to Pipe for 560,000, which included a profit of $20,000. At year end 50% of the merchandise remained in Pipes inventory. Required: 1. Which method is Pipe using to account for the investment in Match? How do you know? 2. What elimination entry(ies) are associated with the elimination of intercompany profits due to the sale of merchandise? 3. What elimination entry(ies) are necessary with the sale of equipment by Match to Pipe? 4. What elimination entry(ies) are associated with the note to Match? Why are the entry(ies) made