*Exercise 5-11

On January 1, 2013, Piper Company acquired an 80% interest in Sand Company for $2,189,800. At that time the common stock and retained earnings of Sand Company were $1,713,600 and $683,300, 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
Inventory		$46,400
Equipment (net)		52,200

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 Companys reported net income and declared dividends for 2013 through 2015 are shown here:

		2013		2014		2015
Net Income		$100,200		$157,200		$78,600
Dividends		20,100		28,600		14,200

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. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Au theu of the cost method. (if no entry is required, select "No Entry for the count titles and enter for the amount Credit account titles are automatically indented when the amount is entered. Do not indent minully) Date Account Titles and Explanation (Te eliminate intercompany dividende Ta diminate the investment account) (To allocate and depreciate the difference between implied and beck value) (To establish reciprocity/convert te equity method of 1/1/2011) Te eliminate intercompany dividende) To eliminate investment recount and create encontrolling interest asent) (To allocate and depreciate the difference between implied and book value (To establish reciprocity/converts equity method as of 1/1/2012) (To eliminate intercompany dividende) (To eliminate investment account and create noncontrolling interest count) To allocate and depreciate the difference between implied and book value)