on january 2 2020, perkins company acquired all of sanders corporations stock for 20,000,000 cash, when the book value of Sanders shareholders equity was 4,000,000. sanders reported 600,000 of net income and declared and paid dividends of 150,000 in 2020. Data related to the acquisition at January 2 2020, appear below:

Out of pocket merger costs paid in cash by Perkins 80,000

excess of fair value of sanders inventory over book value 100,000

excess of fair value of sanders equipment over book value (10yr life straight line). 400,000

fair value of sanders previously unrecorded lawsuit liability 50,000

fair value of sanders previously unrecorded in -process research and development 500,000

acquisistion realted restructuring costs paid in cash by Perkins 250,000

Sanders uses FIFO, and all of its beginning inventory was sold in 2020. The fair value of the previously unrecorded lawsuit liability increased to 85,000 by December 31 2020 within the measurement period. Impairment tests show 25,000 in impairment for the in-process R& D and no impairment for the good will during 2020.

Required

a) prepare a schedule to compute Perkins equity in net income of Sanders Corporation for 2020 using the complete equity method, and prepare all entries related to the investment made by perkins during 2020

b) compute the goodwill for this acquisition, after the measurement period adjustment

c) prepare the eliminating entries made in consolidation at Decemeber 31 2020