On January 1, 2017, Prince Company purchased an 80% interest in the common stock of Sivet Company for $1,040,000, which was $60,000 greater than the book value of equity acquired. The difference between implied and book value relates to the subsidiary's land. The following information is from the consolidated retained earnings section of the consolidated staternents workpaper for the year ended December 31, 2017: 1/01/17 retained earnings Net income Dividends declared 12/31/17 retained earnings Preset COMPANY $300,000 220,000 (80.000) $440,000 CONSOLIDATED BALANCES $1,400,000 680,000 (140.000) $1.940,000 Preset's stockholders' equity includes only common stock and retained earnings. Learning Objective: 2 Prepare journal entries on the parent's books to account for an investment using the cost method, the partial equity method, and the complete equity method., 4 Prepare a schedule for the computation and allocation of the difference between implied and book values. Section Reference: 4.2