P2-6 Interim Acquisition 13 3 Investments-Investor Accounting and Report On March 31, 2014, Wero CA purchased Javier CA's 30 percent interest by paying $450,000 cash. The book values of Javier CA's assets and liabilities were equal to the fair values at the acquisition date, except for inventories that were overvalued by $100,000, and equipment (6 years remaining use- $1,200,000. Javier CA reported net income of $100,000 for the year, and declared $50,000 dividend on ful life) that was undervalued by $300,000. The shareholders' equity of Javier CA, on January 1, was July 1 REQUIRED: investment in Javier CA's. 1. Prepare a schedule to allocate the investment fair values/book values differentials relating to Wero CA's 2. Prepare all necessary journal entries for Wero CA in 2014. 3. Determine investment in Javier CA balance at December 31, 2014. 129