Exercise 9-13 (Static) Sale of Subsidiary Shares by Parent LO 9-3 Pepper Home Builders Incorporated acquired 80 percent of Salty Concrete Works stock on January 1, 20X3, for $360,000. At that date, the fair value of the noncontrolling interest was $90,000. Salty Concrete's balance sheet contained the following amounts at the time of the combination: Cash Accounts Receivable Inventory Construction Work in Progress Other Assets (net) Total Assets $ 30,000 Accounts Payable 65,000 Bonds Payable 15,000 470,000 220,000 Common Stock Retained Earnings $ 800,000 Total Liabilities and Equities $ 50,000 300,000 200,000 250,000 $ 800,000 During each of the next three years, Salty reported net income of $50,000 and paid dividends of $20,000. On January 1, 20x5, Pepper sold 4,000 of the Salty $10 par value shares for $120,000 in cash. Pepper used the equity method in accounting for its ownership of Salty. Required: a. Compute the balance in the investment account reported by Pepper on January 1, 20X5, before its sale of shares. b. Prepare the entry recorded by Pepper when it sold the Salty shares. c. Prepare the appropriate consolidation entries to complete a full worksheet for 20X5 Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the balance in the investment account reported by Pepper on January 1, 20X5, before its sale of shares. Balance prior to sale of shares Required A Required B >