*Exercise 5-11 On January 1, 2013, Piper Company acquired an 80% interest in Sand Company for $2,369,300. At that time the common stock and retained earnings of Sand Company were $1,801,900 and $733,200, respectively. Differences between the fair value and the book value of the identifiable assets of Sand Company were as follows: Inventory Equipment (net) Fair Value in Excess of Book Value $44,200 50,400 The book values of all other assets and liabilities of Sand Company were equal to their fair values on January 1, 2013. The equipment had a remaining useful life of eight years. Inventory is accounted for on a FIFO basis. Sand Company's reported net income and declared dividends for 2013 through 2015 are shown here: 2013 2014 31,300 2015 $77,200 14,800 Net Income $95,500 $146,600 Dividends 19,500 Prepare the eliminating/adjusting entries needed on the consolidated worksheet for the years ended 2013, 2014, and 2015. *(a) Assume the use of the cost method. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts not indent manually.) Date Account Titles and Explanation 2013 Dividend Income Dividends Declared - Su (To eliminate intercompany dividends) Retained Earnings Common Stock Difference between Imp Investment in Subsidiar Noncontrolling Interest (To eliminate the investment account) Cost of Goods Sold Depreciation Expense Equipment Goodwill Difference between Imp (To allocate and depreciate the difference between implied and book value) Debit 15600 15600 Credit 2014 Investment in Subsidiar Retained Earnings (To establish reciprocity/convert to equity method as of 1/1/2011) Dividend Income Dividends Declared - Su (To eliminate intercompany dividends) Retained Earnings Common Stock Difference between Imp Investment in Subsidiar Noncontrolling Interest (To eliminate investment account and create noncontrolling interest account) Retained Earnings Noncontrolling Interest Depreciation Expense Equipment Goodwill Difference between Imp (To allocate and depreciate the difference between implied and book value) 2015 Investment in Subsidiar Retained Earnings (To establish reciprocity/convert to equity method as of 1/1/2012) Dividend Income Dividends Declared - Su (To eliminate intercompany dividends) Retained Earnings Common Stock Difference between Imp Investment in Subsidiar Noncontrolling Interest (To eliminate investment account and create noncontrolling interest account) Retained Earnings Noncontrolling Interest Depreciation Expense Equipment Goodwill Difference between Imp (To allocate and depreciate the difference between implied and book value)