On August 31, 2019, Brown Corporation purchased 90% shares of Owen Company’s common stock for $6,500,000 cash. On January 1, 2019, Owen Company had common stock of $4,500,000 and retained earnings of $1,800,000. The balance sheet information available for Owen Company on August 31, 2019, showed the following:

                                             Book Value            Fair Value

            Inventory (FIFO)              $1,300,000              $1,500,000

            Equipment (net)                  1,900,000                1,500,000

            Land                                    3,000,000                3,000,000

The equipment had a remaining useful life of ten years. Owen Company reported $240,000 of net income in 2019 and declared $60,000 on December 1 of the year.

Required:

Prepare the workpaper entries on December 31, 2019 assuming the full equity method is used.