On January 1, 2021, Penguin Corporation bought 80% of the stock of Sea Gull Corporation for $700,000. The Balance Sheets of the two companies immediately after the acquisition (January 1, 2021) of Sea Gull Corp. showed the following amounts: Penguin Sea Gull Cash $ 130,000 $100,000 Accounts Receivable 120,000 30,000 Inventory 400,000 10,000 Land 500,000 100,000 Buildings & Equipment - Net 1,000,000 420,000 Trademarks 0 40,000 Investment in Sea Gull 700,000 0 Total Assets 2,850,000 700,000 Accounts Payable $ 420,000 80,000 Long-Term Liabilities 1,080,000 20,000 Common Stock 1,000,000 400,000 Additional Paid in Capital 50,000 Retained Earnings 350.000 150.000 Total Liabilities and Stockholders' Equity $2,850,000 700,000 On the date of acquisition, the Book Value of Sea Gull equaled its Fair Market Value (FMV), except for land that had a FMV of $140,000 and the trademarks that had a FMV of $60,000. On the date of acquisition the FMV of previously unrecorded identifiable intangibles (2-year life) of Sea Gull was $40,000, and the NonControlling Interest's fair value is $175,000. Penguin uses the equity method to record its investment in Sea Gull. Required: 1. List all journal entries that Penguin made to record its investment in Sea gull on the date of acquisition. 2. List all Elimination Entries that would need to be made in order to prepare a workpaper for the consolidated Balance Sheet of Penguin and Sea gull immediately after the combination (January 1, 2019). 3. Prepare a workpaper for the consolidated Balance Sheet of Penguin and Sea gull immediately after the combination (January 1, 2021). Show all necessary elimination entries in their proper columns. Use a letter coding system for each elimination entry. Use Figure 5-2 in text for general format, and syllabus for additional formal requirements. Remember to do the format requirements in the syllabus, such as Dates, Company name (i.c. parent identified), Name of statement, Dollar Signs, Commas, and Underlines