On January 1, 2014, Pert Company purchased 85% of the outstanding common stock of Sales Company for $343,100. On that date, Sales Companys stockholders equity consisted of common stock, $93,200; other contributed capital, $40,900; and retained earnings, $127,800. Pert Company paid more than the book value of net assets acquired because the recorded cost of Sales Companys land was significantly less than its fair value. During 2014 Sales Company earned $161,800 and declared and paid a $50,300 dividend. Pert Company used the partial equity method to record its investment in Sales Company. Assume that during 2015 Sales Company earned $192,600 and declared and paid a $50,300 dividend.

(a)

Prepare the investment-related entries on Pert Companys books for 2015. (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 equity income (loss))
(To record dividend income)

(b)

Prepare the workpaper eliminating entries for a workpaper on December 31, 2015. (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.)