On January 1, 2014, Pert Company purchased 85% of the outstanding common stock of Sales Company for $353,900. On that date, Sales Company's stockholders' equity consisted of common stock, $94,800; other contributed capital, $36,900; and retained earnings, $139,300. Pert Company paid more than the book value of net assets acquired because the recorded cost of Sales Company's land was significantly less than its fair value.

During 2014 Sales Company earned $145,600 and declared and paid a $49,000 dividend. Pert Company used the partial equity method to record its investment in Sales Company.

(a) Prepar the investment-related entries on Pert Company's books for 2014.(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation Debit Credit

(To record the investment in Sales Company)

(To record equity income (loss))

(To record dividend income)

(b) Prepar the workpaper eliminating entries for a workpaper on December 31, 2014.(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.Round answers to 0 decimal places, e.g. 5,125.)

Account Titles and Explanation Debit Credit

(To record equity income (loss)

and dividend income)

(To eliminate investment in

subsidiary and create

noncontrolling interest)

(To eliminate excess of the

book value of equity acquired.)