KA Nitro Corporation purchased an 80% interest in Mars Company on January 1, 20X5, The following determination and distribution of excess schedule was prepared on the purchase date: Price paid for investment in Mars Less book value of interest purchased: Common stock Paid in capital in excess of par Retained earnings Total stockholder's equity Ownership interest Excess of cost over book Adjustments: Equipment (80%x$20,000) (8-year amortization, $2,000 per year) Dr. Goodwill Total adjustments Income Dividends Event 20X5 To record investment in Mars Company Subsidiary income of $45,000 reported to parent Dividends of $12,000 paid by Mars 20X6 Subsidiary income of $52,000 reported to parent Income and dividends for Mars Company dur20X5 and 20X6 were as follows: 20X6 $52,000 18,000 Investment in Mars Company Cash Investment in Mars Company Subsidiary income $24,000 41,600 93,400 $159,000 Cash Investment in Mars Company 80% Instructions: 1.Complete the following entries on the books of Mars Company under each of the methods indicated. Investment in Mars Company Subsidiary income $160,000 20X5 $45,000 12,000 127,200 $32.800 $16,000 16.000 Dr. $32.800 (A) (B) Sophisticated Simple Equity Method Equity Method (C) Cost Method