Payton Corporation buys 80 percent of Sheilla Company on January 1, 2017, for $150,000. At the time, Sheilla's common stock was $100,000 and retained earnings totaled $80,000. It was determined that Sheilla's assets and liabilities were all at their fair value except for land. The trial balances of Payton and Sheilla on December 31, 2017, are listed below.

Payton Corporation Sheilla Company Debit Credit Debit Credit Cash $ 25,000 $ 10,000 Receivables (net) 10,000 11,000 Inventory, January 1 15,000 9,000 Investment in S 150,000 Plant and equipment (net 225,000 185,000 Land 100,000 80,000 Accounts payable $ 24,000 $ 10,000 Other liabilities 80,000 100,000 Common stock ($10 par) 250,000 100,000 Retained earnings, January 1 135.000 80,000 Dividends declared 15,000 20,000 Sales 130,000 75,000 Dividend income 16,000 Purchases 55.000 25,000 Expenses 40.000 25,000 $635.000 $635.000 $365.000 $365.000 Inventory, December 31 $12,000 $10,000 A. Find the difference between implied and book value. (10%) B. Record the entries in Payton's books to reflect its transactions with Sheilla in 2017, assuming the cost method. (10%)