On January 1, 2007, Hebron, Inc. purchased 75 percent of the outstanding stock of Jasper, Inc. for $1 million. At the date of acquisition Jasper's common stock and retained earnings account balances were $500,000 and $700,000, respectively. The market value of Jasper's net assets were equal to their book values with the exception of equipment which had a market value that was $50,000 greater than its book value. The equipment had a remaining economic value of 5 years. During 2007, Jasper reported net income of $300,000, and paid dividends of $30,000. During 2008 Jasper reported net income of $400,000, comprehensive income of $420,000, and dividends of $40,000. Required: Prepare all elimination entries needed in a three-part workpaper to prepare the year 2008 consolidated financial statements, assuming that Hebron uses the equity method to account for its investment in Jasper.