Eliminating Entries (including Goodwill Impairment) and Worksheets for Various Years, Partial Equity Method LO 6 (Note that this is the same problem as Problem 5-4, but assuming the use of the partial equity method.) On January 1, 2013, Porter Company purchased an 80% interest in the capital stock of Salem Company for $850,000. At that time, Salem Company had capital stock of $550,000 and retained earnings of $80,000. Porter Company uses the partial equity method to record its investment in Salem Company. Differences between the fair value and the book value of the identifiable assets of Salem Company were as follows: Equipment Land Inventory Fair Value in Excess of Book Value $130,000 65,000 40,000 The book values of all other assets and liabilities of Salem Company were equal to their fair values on January 1, 2013. The equipment had a remaining life of five years on January 1, 2013. The inventory was sold in 2013. Salem Companys net income and dividends declared in 2013 and 2014 were as follows: Year 2013 Net Income of $100,000; Dividends Declared of $25,000 Year 2014 Net Income of $110,000; Dividends Declared of $35,000 Required: A. Present the eliminating/adjustingentriesneededontheconsolidatedworksheetfortheyearendedDecember31, 2013. (It is not necessary to prepare the worksheet.) B. Present the eliminating/adjustingentriesneededontheconsolidatedworksheetfortheyearendedDecember31, 2014. (It is not necessary to prepare the worksheet.)