ONLY NEED PART (b). The format needs to be the same as illustration #2 worksheet. thank you!

Illustration #2-Stock Acquisition (Ch.2) Pepper Company, which is a calendar-year-reporting company, purchased 100% of the common stock of Salt Inc. for $325,000 on 12/31/17. Pepper declared dividends of $80,000 and Salt declared dividends of $10,000 during 2017 Each company's financial statements for the year ended 12/31/17 immediately after the acquisition are as follows Income Statement (2017) Pepper C Salt Co. Sales Cost of sales (900,000) 500,000 260,000 (500,000) 250,000 202.000 Net Income Balance Sheet (as of 12/31/17) Cash Accounts receivable 45,000 75,000 105,000 325,000 100,000 250,000 20,000 70,000 80,000 Investment in Salt Land Buildings and equipment Accumulated depreciation 70,000 220,000 (60,000) 400,000 (150,000) Total Assets 750,000 Payables and accruals Bonds payable Common stock Retained earnings (80,000) (20,000) (60,000) (150,000) (100,000) (300,000) 350 Total Liabilities and Equity Required: Prepare a consolidation worksheet on the acquisition date of 12/31/17 assuming that the book values of Salt's net assets approximated fair value on the acquisition date. Prepare a consolidation worksheet on the acquisition date of 12/31/17 assuming that the following net assets of Salt had fair values different than book value on the acquisition date a. b. FMV 75,000 100,000 210,000 Cost Inventory Land Building and equipment, net Covenant-not-to-complete Bonds payable 80,000 160,000 150,00040,000 175,000 Econ. 139 (Harmon) revised April 2018 Mist #200) Illustration #2 Acquisition Date Income Statement (2017) pper Co. Salt Co. Adjustments Debit Credit Consolidated Sales Cost of sales Expenses (900,000) (500,000) 500,000250,000 260,000 202,000 Net Income (140,000)(48,000) Statement of Retained Earnings Balances, beginning 1/1/17 Net income Dividends declared Balances, 12/ 31/17 (290,000) (62,000) (140,000)(48,000) 80,000 10,000 (350,000) (90,000) Balance Sheet (as of 12/31/17) Cash Accounts receivable Inventory Investment in Salt Land Buildings and equipment 45,000 20,000 70,000 80,000 75,000 105,000 325,000 100,000 250,000 220,000 150,000) (60,000) 70,000 Accumulated deprecaition Total Assets 750,000 400,000 Payables and accruals Bonds payable Common stock Retained earnings (80,000) (60,000) (20,000) (150,000) (300,000) (100,000) (350,000) (90,000) Total Liab. and Equity 400