Exercise 5-2 On January 1, 2015, Payne Corporation purchased a 75% interest in Salmon Company for $625,575. A summary of Salmon Company's balance sheet on that date revealed the following: Book Value Fair Value Equipment $543,500 $765,200 Other assets 148,900 148,900 $692,400 $914,100 Liabilities $80,000 $80,000 Common stock 205,800 Retained earnings 406,600 $692,400 The equipment had an original life of 15 years and has a remaining useful life of 10 years. For the December 31, 2015, consolidated financial statements workpaper, prepare the workpaper entry to allocate and depreciate the difference between book value and the value implied by the purchase price assuming: Your answer has been saved and sent for grading. See Gradebook for score details. Equipment is presented net of accumulated depreciation. (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.) Account Titles and Explanation Debit Credit Equipment 221700 221700 Difference between Im (To allocate the difference between book value and the value implied) Depreciation Expense 22170 22170 Accumulated Depreciat (To depreciate the difference between book value and the value implied) SHOW LIST OF ACCOUNTS LINK TO TEXT (b) ZYour answer has been saved and sent for grading. See Gradebook for score details. Accumulated depreciation is presented on a separate row in the workpaper and in the consolidated statement of financial position. (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.) Account Titles and Explanation Debit Credit Equipment 332550 Accumulated Depreciat 110850 221700 Difference between Imi (To allocate the difference between book value and the value implied) 22170 Depreciation Expense Accumulated Depreciat (To depreciate the difference between book value and the value implied) 22170