Chapter 5 Assignment On January 1, 2018, Pen Corporation acquired 75% of the outstanding common stock of Sen Company for $450,000. There was no control premium. Sen's stockholders' equity on January 1, 2018, was as follows: Common stock, S20 par Additional paid-in capital Retained earnings $200,000 100,000 100,000 Differences between book value and fair value of the net identifiable assets of Sen Company on January 1, 2018, were limited to the following: Book value 40,000 Fair value 39,400 Inventories (FIFO) Building (net) [remaining life: 10 years; straight-line depreciation; no salvage value] 180,000 200,000 Pen uses the complete equity method to account for its investment in Sen. During 2018, Sen had a net income of $80,000. Sen's cost of goods sold (FIFO) was $70,000 in 2018. On December 23, 2018, Sen declared and paid S50,000 cash dividend to its shareholders. Goodwill was unimpaired as of December 31,2018 (j) Prepare journal entries for Pen to record under the complete equity method of accounting the dividends and operating results of Sen in 2018 (ii) Prepare the working paper eliminating entries C, E, R, O and N (in journal entry format) for Pen Corporation and subsidiary for the year ended December 31, 2018