On January 1, 2019, Palma Associates purchased 12,000 shares of the outstanding common stock of Baylor Company for $570,000. The assets of Baylor Company had the following values on January 1, 2019. Fair Market Book Value Value Inventories.................................$ 90,000 $165,000 Plant and equipment..................... 150,000 180,000 All other assets and liabilities had book values approximately equal to their respective fair market values. The plant and equipment had a remaining useful life of 15 years from January 1, 2019, and Baylor Company uses the FIFO inventory cost flow assumption. On January 1, 2019, the capital stock of Baylor Company was $150,000, $10 par, and its retained earnings were $450,000. Baylor Company earned $190,000 in 2019 and paid dividends of $84,000 during this year. Palma Associates uses the complete equity method to account for its Investment in Baylor Company. 

Required: 

A. Prepare a computation and allocation schedule.

B. Prepare the balance sheet elimination entries as of December 31, 2019.

C. Compute the amount of equity in subsidiary income recorded on the books of Palma Associates on December 31, 2019.

D. Compute the balance in the investment account on December 31, 2019.