"On January 1, 2010, P Company purchased an 80% interest in s Company for $900,000. At that time, s Company had capital stock of $600,000 and retained earnings of $100,000. Differences between the fair value and the book value of the identifiable assets of Salem Company were as follows Fair value in Excess of Book Value Equipment S 180,000 Land 20,000 Inventory 20,000 The book values of all other assets and liabilities of S Company were equal to their fair values on January 1, 2010. The equipment had a remaining life of five years. The inventory was sold in 2010 s Company's net income and dividends declared in 2010 Net Income of $120,000, Dividends Declared of $30,000 Prepare W/P to allocate the differences (see above question) PrepareJ/E under cost method for Ni and Dividends (see above question) Prepare W/P entries to eliminate Dividends and convert cost to equilty see above question) Prepare W/P entry to eliminate the equity of S and investment of Pat 12/31(see above question) Prepare W/P to allocate differences fall inventory has been sold), and the extra depreciation entry (see above question) D Focus