P Co. purchased 60% of the S Co. for $720,000 on 1-11-16. S Co had $400,000 of common stock and $200,000 of retained earnings on that date. The following value were determined for the S. Co. on the date of purchase. Prepare the 1-11-16 workpaper entries to eliminate the investment account and to allocate the difference between the cost and book value. Referring to problem #1, if the equipment has a remaining life of four years, prepare the workpaper entry to allocate the difference between cost and book value for each of 12-31-16 and 12-31-17. Be sure to label the years. Padilla Company purchased 80% of the common stock of Sanoma Company in the market on January 1, 2000 paying $32,000 at total increase of $40,000 more than the book value of the interest acquired. The difference between cost and book value is attributed to land. What workpaper entry is required each year until the land is disposed of? Assume the land is sold on 1/1/13 and the Sanoma Company recognizes a $50,000 gain on its books. What amount of gain will be reflected in the income on the 2013 consolidated income statement? In all years subsequent to the disposal of the land, what workpaper entry will b necessary? P.Co. owns 80% of S. Co., S sells merchandise to P. at 25% above cost. During 2015 intercompany sales amounted to $240,000 and $300,000 respectively. At the end of b 2015 and 2016, P had 30% of the goods purchased that year from S in its ending inventory. There were no intercompany sales prior to 2015. Prepare in general form all entries necessary on the consolidated statements workpapers to eliminate the effects of the intercompany sales for each of 2015 and 2016. Label the