On January 1, 2019, Plymouth Corporation purchased an 80% interest in Salem Company for $800,000. A summary of Salems balance sheet on that date revealed the following:

Book Value Fair Value

Receivables $ 100,000 $ 100,000

Inventory 350,000 370,000

Equipment 500,000 650,000

Land 250,000 330,000

$1,200,000 $ 1,450,000

Liabilities $ 300,000

Common stock 500,000

Retained earnings 400,000

$1,200,000

The equipment had an original life of 20 years and has a remaining useful life of 10 years.

A. Calculate the difference between implied and book value solve in Microsoft word

B. Determine the allocation of the difference between implied and book value solve in Microsoft word

C. For the January 1, 2019, Prepare the eliminating/adjusting entries needed on the consolidated workpaper solve in Microsoft word