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On January 1, 2014, Packard Company purchased an 80% interest in Sage Company for $631,900. On this date Sage Company had common stock of $139,500

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On January 1, 2014, Packard Company purchased an 80% interest in Sage Company for $631,900. On this date Sage Company had common stock of $139,500 and retained earnings of $380,500. Sage Company's equipment on the date of Packard Company's purchase had a book value of $393,000 and a fair value of $662,875. All equipment had an estimated useful life of 10 years on January 2, 2009. Prepare the December 31 consolidated financial statements workpaper entries for 2014 and 2015 to allocate and depreciate the difference between book value and the value implied by the purchase price, recording accumulated depreciation as a separate balance. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 2014 2015

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