On January 1, 2009, Paris Corporation exchanged $1,090,000 fair-value consideration for all of the outstanding voting stock of Santiago, Inc. At the acquisition date, Salzburg had a book value equal to $950,000. Salzburgs individual assets and liabilities had fair values equal to their respective book values except for the patented technology account, which was undervalued by $240,000 with an estimated remaining life of six years. On December 31, 2009 each company submitted the following financial statements for consolidation.

Income Statement	Paris Corp.	Salzburg, Inc.
Revenues	535,000	495,000
Cost of goods sold	(170,000)	(155,000)
Gain on purchase	100,000	0
Depreciation	(125,000)	(140,000)
Equity earnings from Salzburg	160,000	0
Net Income	500,000	200,000
Statement of Ret. Earnings
Retained Earnings, 1/1	1,500,000	650,000
Net Income (above)	500,000	200,000
Dividends paid	(200,000)	(50,000)
Retained Earnings, 31/12	1,800,000	800,000
Balance Sheet
Current Assets	190,000	300,000
Investment in Salzburg	1,300,000	0
Trademarks	100,000	200,000
Patented technology	300,000	400,000
Equipment	610,000	300,000
Total assets	2,500,000	1,200,000
Liabilities	165,000	100,000
Common stock	535,000	300,000
Retained earnings, 31/12	1,800,000	800,000
Total liabilities and equity	2,500,000	1,200,000

Prepare necessary journal entries and consolidated worksheet using equity method.