On January 1, 20x0, Pepper Corporation issued 8,000 of its $10 par value shares to acquire 45 percent of the shares of Salt Manufacturing. Salt Manufacturing's balance sheet immediately before the acquisition contained the following items: SALT MANUFACTURING Balance Sheet January 1, 20xo Book Value Fair Value Assets Cash and Receivables $ 44,000 $ 44,000 Land 86,000 96,000 Buildings and Equipment (net) 124,000 154,000 Patent 96,000 96,000 Total Assets 350,000 Liabilities & Equities Accounts Payable $172,000 172,000 Common Stock 134,000 Retained Earnings 44,000 Total Liabilities & Equities $350,000 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 5 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 $84,000 and $54,000 and paid dividends of $23,000 and $44,000, respectively. Pepper used the equity method in accounting for its ownership of Salt Manufacturing Required: a. Prepare the entry recorded by Pepper Corporation at the time of acquisition. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet A Record the acquisition of Salt Manufacturing. b-1. Prepare the journal entries recorded by Pepper during 20x0 related to its investment in Salt Manufacturing. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list A Record the acquisition of Salt Manufacturing. B Record the dividends received from Salt Manufacturing. C Record the equity-method income for period. D Record the entry to amortize the differential assigned to buildings and equipment. Credit b-2. Prepare the journal entries recorded by Pepper during 20X1 related to its investment in Salt Manufacturing. (lf no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list X A Record the dividends received from Salt Manufacturing. B Record the equity-method income for period. C Record the entry to amortize the differential assigned to buildings and equipment. Credit Note : journal entry has been entered Record entry Clear entry View general journal c. What balance will be reported in Pepper's investment account on December 31, 20X1? Investment account balance