*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: Fair Value in Excess of Book Value $44,200 50,400 Inventory Equipment (net) 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 2015 Net Income Dividends $95,500 19,500 $146,600 31,300 $77,200 14,800 Prepare the eliminating/adjusting entries needed on the consolidated worksheet for the years ended 2013, 2014, and 2015. Your answer is partially correct. Try again. Assume the use of the complete equity method. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts, Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation 2013 Equity in Subsidiary Income (25920 Dividends Declared - Subsidiary Company 15600 Investment in Subsidiary 10320 (To eliminate intercompany dividends and income) TRetained Earnings 1733200 1801900 Common Stock Difference between Implied and Book Value 426525 Investment in Subsidiary 12369300 592325 Non controlling Interest (To eliminate the investment account) Cost of Goods Sold 44200 16300 Depreciation Expense Equipment Goodwill 44100 1331925 1426525 Difference between Implied and Book Value (To allocate and depreciate the difference between implied and book value) 2014 Equity in Subsidiary Income 102160 Dividends Declared - Subsidiary Company 5 25040 Investment in Subsidiary 77120 (To eliminate intercompany dividends and income) Retained Earnings 1809200 Common Stock T1801900 2014 Equity in Subsidiary Income 102160 Dividends Declared - Subsidiary Company 125040) Investment in Subsidiary 77120 (To eliminate intercompany dividends and income) Retained Earnings 1809200 Common Stock 1801900 Difference between Implied and Book Value 1426525 Investment in Subsidiary 22430100 1607525 Noncontrolling Interest (To eliminate investment account and create noncontrolling interest account) Retained Earnings 140400 Noncontrolling Interest 110100 Depreciation Expense T6300 Equipment 37800 Goodwill 1331925 1426525 Difference between Implied and Book Value (To allocate and depreciate the difference between implied and book value) 2015 Equity in Subsidiary Income 46640 Dividends Declared - Subsidiary Company 111840 Investment in Subsidiary 34800 (To eliminate intercompany dividends and income) Retained Earnings 1924500 Common Stock T1801900 Difference between Implied and Book Value T426525 TInvestment in Subsidiaryl 2522340 1630585 Noncontrolling Interest (To eliminate investment account and create noncontrolling interest account) (To allocate and depreciate the difference between implied and book value) 2015 Equity in Subsidiary Income 46640 Dividends Declared - Subsidiary Company [11840 Investment in Subsidiary 34800 (To eliminate intercompany dividends and income) Retained Earnings 1924500 Common Stock 1801900 Difference between Implied and Book Value 1426525 TInvestment in Subsidiary 2522340 1630585 Noncontrolling Interest (To eliminate investment account and create noncontrolling interest account) Retained Earnings 745440 Noncontrolling Interest T11360 Depreciation Expense 16300 131500 Equipment Goodwill) 1331925 7426525 Difference between Implied and Book Value (To allocate and depreciate the difference between implied and book value) *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: Fair Value in Excess of Book Value $44,200 50,400 Inventory Equipment (net) 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 2015 Net Income Dividends $95,500 19,500 $146,600 31,300 $77,200 14,800 Prepare the eliminating/adjusting entries needed on the consolidated worksheet for the years ended 2013, 2014, and 2015. Your answer is partially correct. Try again. Assume the use of the complete equity method. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts, Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation 2013 Equity in Subsidiary Income (25920 Dividends Declared - Subsidiary Company 15600 Investment in Subsidiary 10320 (To eliminate intercompany dividends and income) TRetained Earnings 1733200 1801900 Common Stock Difference between Implied and Book Value 426525 Investment in Subsidiary 12369300 592325 Non controlling Interest (To eliminate the investment account) Cost of Goods Sold 44200 16300 Depreciation Expense Equipment Goodwill 44100 1331925 1426525 Difference between Implied and Book Value (To allocate and depreciate the difference between implied and book value) 2014 Equity in Subsidiary Income 102160 Dividends Declared - Subsidiary Company 5 25040 Investment in Subsidiary 77120 (To eliminate intercompany dividends and income) Retained Earnings 1809200 Common Stock T1801900 2014 Equity in Subsidiary Income 102160 Dividends Declared - Subsidiary Company 125040) Investment in Subsidiary 77120 (To eliminate intercompany dividends and income) Retained Earnings 1809200 Common Stock 1801900 Difference between Implied and Book Value 1426525 Investment in Subsidiary 22430100 1607525 Noncontrolling Interest (To eliminate investment account and create noncontrolling interest account) Retained Earnings 140400 Noncontrolling Interest 110100 Depreciation Expense T6300 Equipment 37800 Goodwill 1331925 1426525 Difference between Implied and Book Value (To allocate and depreciate the difference between implied and book value) 2015 Equity in Subsidiary Income 46640 Dividends Declared - Subsidiary Company 111840 Investment in Subsidiary 34800 (To eliminate intercompany dividends and income) Retained Earnings 1924500 Common Stock T1801900 Difference between Implied and Book Value T426525 TInvestment in Subsidiaryl 2522340 1630585 Noncontrolling Interest (To eliminate investment account and create noncontrolling interest account) (To allocate and depreciate the difference between implied and book value) 2015 Equity in Subsidiary Income 46640 Dividends Declared - Subsidiary Company [11840 Investment in Subsidiary 34800 (To eliminate intercompany dividends and income) Retained Earnings 1924500 Common Stock 1801900 Difference between Implied and Book Value 1426525 TInvestment in Subsidiary 2522340 1630585 Noncontrolling Interest (To eliminate investment account and create noncontrolling interest account) Retained Earnings 745440 Noncontrolling Interest T11360 Depreciation Expense 16300 131500 Equipment Goodwill) 1331925 7426525 Difference between Implied and Book Value (To allocate and depreciate the difference between implied and book value)