On January 1, 2015, Payne Corporation purchased a 75% interest in Salmon Company for $585,000. A summary of Salmon Companys balance sheet on that date revealed the following:

Book Value	Fair Value
Equipment	$525,000	$705,000
Other assets	150,000	150,000
	$675,000	$855,000
Liabilities	$75,000	$75,000
Common stock	225,000
Retained earnings	375,000
$675,000

The equipment had an original life of 15 years and has a remaining useful life of 10 years.

For the December 31, 2015, consolidated financial statements workpaper, prepare the workpaper entry to allocate and depreciate the difference between book value and the value implied by the purchase price assuming:

a) Equipment is presented net of accumulated depreciation.