Exercise 5-11 On January 1, 2013, Piper Company acquired an 80% interest in Sand Company for $2,336,600. At that time the common stock and retained earnings of Sand Company were $1,737,300 and $730,300, respectively. Differences between the fair value and the book value of the identifiable assets of Sand Company were as follows Fair Value in Ex of Book Value Inventory Equipment (net) $44,200 48,200 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 $102,000 $157,000 $77,300 Dividends 20,700 1,000 14,700 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 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation 2013 Equity in Subsidiary Income Debit Credit 81600 Investment in Subsidiary 65038 16562 Dividends Declared Subsidiary Company (To eliminate intercompany dividends and income) Common Stock 1737300 Retained Earnings 730300 Difference between Implied and Book Value 453150 Investment in Subsidiary 2336600 Noncontrolling Interest 584150 (To eliminate the investment account) Depreciation Expense 6025 Equipment 42175 Cost of Goods Sold 44200 Goodwill 360750 Difference between Implied and Book Value 453150 (To allocate and depreciate the difference between implied and book value) 2014 Equity in Subsidiary Income 125600 Investment in Subsidiary 100800 Dividends Declared Subsidiary Company To eliminate intercompany dividends and income) Common Stock 24800 1737300 Retained Earnings 811600 Difference between Implied and Book Value 453150 Investment in Subsidiary 2401640 600410 Noncontrolling Interest (To eliminate Investment account and create noncontrolling interest account) Depreciation Expense Equipment Investment in Subsidiary Noncontrolling Interest 6025 36150 40180 10045 Goodwill 360750 Difference between Implied and Book Value 453150 To allocate and depreciate the difference between implied and book value) 2015 Equity in Subsidiary Income 61840 Investment in Subsidiary 50080 Dividends Declared - Subsidiary Company 11760 (To eliminate intercompany dividends and income) Common Stock 1737300 Retained Earnings 937600 Difference between Implied and Book Value 453150 Investment in Subsidiary 2502440 Noncontrolling Interest (To eliminate investment account and create noncontrolling interest account) Depreclation Expense 625610 6025 30125 Equipment Investment in Subsidiary Noncontrolling Interest 45000 11250 Goodwill 360750 Difference between Implied and Book Value 453150 To allocate and depreciate the difference between implied and book value) Using the Equity method