On January 1, 2018, Pen Corporation acquired 75% of the outstanding common stock of Sen Company for $450,000. There was no control premium. Sens stockholders equity on January 1, 2018, was as follows:

Common Stock, $20 par	$200,000
Additional Paid-In Capital	$110,000
Retained Earnings	$100,000

Differences between book value and fair value of the net identifiable assets of Sen Company on January 1, 2018, were limited to the following:

	Book Value	Fair Value
Inventories (FIFO)	$40,000	$39,400
Building (Net) [Remaining Life: 10 Years; Straight-Line Depreciation; No Salvage Value	$180,000	$200,000

Pen uses the complete equity method to account for its investment in Sen. During 2018, Sen had a net income of $80,000. Sens cost of goods sold was $70,000 in 2018. On December 23, 2018, Sen declared and paid $50,000 cash dividend to its shareholders. Goodwill was unimpaired as of December 31, 2018.

1) Determine the fair value of the noncontrolling interest and goodwill at the time of acquisition. [There was no control premium. Additionally, we need to use the alternative way (book value or equity + fair value differences) to determine the fair value of net identifiable assets. Check figure: goodwill = $170,600.]

2) Prepare journal entries for Pen to record under the complete equity method of accounting the operating results of Sen in 2018.

3) Prepare the working paper eliminating entries C, E, R, O and N (in journal entry format) for Pen Corporation and subsidiary for the year ended December 31, 2018.