create the work paper entries using the partial equity method to:

1.) eliminate the parents share of income and dividends

2.) eliminate the investment in s company

3,) allocate the difference between implied and book value

4.) recognize the depreciation from the difference between implied and book value allocated to equipment

p company bought 100% of S companies stock on January 1, 2016 for $410,000 when s company had c/s $350,000 and R/E $44,000. The excess of implied value over book value was allocated $10,000 to inventories sold in 2016, $13,000 to equipment with a 5 year remaining life using straight-line depreciation and the remaining amount applied to goodwill. p company s company Income statement 12/31/14 sales equity from sub inc45000 718000 200000 total revenue 763000200000 500000 100000 11500055000 total cost and exp 615000 155000 148000 45000 45000 cogs other expenses net income net income to R/E 148000 S co R/E STATEMENT 12/31/14 P COMPANY 82000 40000 45000 S COMPANY B Net income from above 148000 dividends declared P Company s company -70,000 -15000 2 Retained Earnings 12/31 160,000 70000 Sheetl P CO s CO Balance Sheet cash/ securituies inventory investment in S difference Implied/book val equipment land goodwill 51000 37300095000 52000 458000 205000 78000 212000 53000 Total assets 848000 429000- Liabilities c/s: p company s company retained earnings 1/1 NCI 12/31 NCI 188000 9000 500000 350000 70000 2 160000 Total 848000 429000