Eliminating Entries (including Goodwill Impairment) and Worksheets for Various Years Lo1 LO6 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. Differences between the fair value and the book value of the identifiable assets of Salem Company were as follows Fair Value in Excess of Book Value Equipment Land Inventory $130,000 65,000 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 Company's 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 A. Prepare a Computation and Allocation Schedule for the difference between book value of equity acquired and the value implied by the purchase price. B. Present the eliminating/adjusting entries needed on the consolidated worksheet for the year ended December 31, 2013. t is not necessary to prepare the worksheet.)