On January 1, 2013, Phow Company acquired 80% of the outstanding capital stock of Slyer Company for $570,000. On that date, the capital stock of Slyer Company was $150,000 and its retained earnings were $450,000.

On the date of acquisition, the assets of Slyer Company had the following values:

	Book Value	Fair Market Value
Inventories	90,000	165,000
Plant and Equipment	150,000	180,000

All other assets and liabilities had book values approximately equal to their respective fair market values. The plant and equipment had a remaining useful life of 10 years from January 1, 2013, and Slyer Company uses the FIFO inventory cost flow assumption.

Slyer Company earned $180,000 in 2013 and paid dividends in that year of $90,000. Pho Company uses the complete equity method to account for its investment in Slyer Company.

Required:

A. Prepare a computation and allocation schedule.

B. Prepare the balance sheet elimination entries as of December 31, 2013.

C. Compute the amount of equity in subsidiary income recorded on the books of Pho Company on December 31, 2013.

D. Compute the balance in the investment account on December 31, 2013.