On January 1, 2020. Pilsner Company acquired a 70% Interest in Smalley Company for $3,500,000. On that date, Smalley Company had common stock of $900,000 and retained earnings of $1,700,000. The book values of assets and liabilities were equal to fair values except for the following: Book Value Fair Value Inventory S 35,000 S 68,000 Supplies 8,000 5,500 Salaries Payable 7,500 9,700 Equipment (net) 130,000 290,000 Land 600,000 760,000 The inventory was sold in 2020. The equipment had an estimated remaining useful life of 8 years. Pilsner Company uses the cost method to record its investment in Smalley Company. Required: Prepare the workpaper entries to allocate, amortize, and depreciate the difference between implied and book value on: (a) 1/1/2020 (b) 12/31/2020 On January 1, 2020, Pilsner Company acquired a 70% interest in Smalley Company for $3,500,000. On that date, Smalley Company had common stock of $900,000 and retained earnings of $1,700,000. The book values of assets and liabilities were equal to fair values except for the following: Book Value Fair Value Inventory $ 55,000 $ 68,000 Supplies 8,000 5,500 Salaries Payable 7,500 9,700 Equipment (net) 130,000 290,000 Land 600,000 760,000 The inventory was sold in 2020. The equipment had an estimated remaining useful life of 8 years. Pilsner Company uses the cost method to record its investment in Smalley Company. Required: Prepare the workpaper entries to allocate, amortize, and depreciate the difference between implied and book value on: (a) 1/1/2020 (b) 12/31/2020 25% On January 1, 2020, Pilsner Company acquired a 70% interest in Smalley Company for $3,500,000. On that date, Smalley Company had common stock of $900,000 and retained earnings of $1,700,000. The book values of assets and liabilities were equal to fair values orthor the following: Book Value Fair Value Inventory $ 55,000 $ 68,000 Supplies 8,000 5,500 Salaries Payable 7,500 9,700 Equipment (net) 130,000 290,000 Land 600,000 760,000 The inventory was sold in 2020. The equipment had an estimated remaining useful life of 8 years. Pilsner Company was the contacted record its investment in Smalley Company. Required: Prepare the workpaper entries to allocate, amortize, and depreciate the difference between implied and book value os (a) 1/1/2020 (b) 12/31/2020 uny. Simplex Company sells merchandise to Pin y 25 At the end of each yeah