On January 1, 20X0, Pepper Corporation issued 6,000 of its $10 par value shares to acquire 45 percent of the shares of Salt Manufacturing. Salt Manufacturing's statement of financial position immediately before the acquisition contained the followinn itoms: On the date of the stock acquisition, Pepper's shares were selling at $35, and Salt Manufacturing's buildings and equipment had a remaining economic life of 10 years. The amount of the differential assigned to goodwill is not impaired. In the two years following the stock acquisition, Salt Manufacturing reported net income of $80,000 and $50,000 and paid dividends of $20,000 and $40,000, respectively. Pepper used the equity method in accounting for its ownership of Salt Manufacturing. Required a. Give the entry recorded by Pepper Corporation at the time of acquisition. b. Give the journal entries recorded by Pepper during 200 and 201 related to its investment in Salt Manufacturing. c. What balance will be reported in Pepper's investment account on December 31, 20X1? [Ch. P5-25]