On January 1, 20X8, Paco Company acquired 75 percent of Salad Corporation's voting common stock for $300,000. At the time of the combination, Salad reported common stock outstanding of $200,000 and retained earnings of $150,000. The book value of Salad's net assets approximated market value except for patents that had a market value of $50,000 more than their book value. The patents had a remaining economic life of ten years at the date of the business combination. Paco uses the equity-method to account for its investment in Stallion. Required: Prepare the journal entry of amortization of excess value for investment in Salad by Paco Company at December 31, 20X8. Edit View Insert Format Tools Table