PCo.purchased 60% ofthe S Co. kr 5720,000 on 1-11-16. S Co had S400000 of common stock and $200,000 of retained eamings on that date 1. The following vales were determined for the S. Co on the dane of panchas BOOK VALUE 80,000 $700,000 FAIR VALUE Land Equipment Prepare the 1-11-16 workpaper entries to eliminate the investment account and to 900,000 550,000 difference betwoen the cost and hook valuc 2 Referring to problem #1.fthe equipmen has a remaininglik offour-prepare the workpaper entry to allocate the diffierence between oost and book value for each of 12 31-16 and 12-31-17. Be sune to label the yeas 3. Padilla Campaay puida ed 80% ofthe common stock of Sex na Company inheepm market on Jenuary 1, 2000 paying $32,000 a total increase of $40,000 more than the book value of the interest acquired. The difference between cost and book value is atibuted to land What workpaper entry is required each year unil the land is disgosed o .Assume the land is sold on 1/1/13 and the Sanoma Company necognines S50,000 pin on its bookWhim unt ofpin will be reflected inthtcomb.cd income on the 2013 consolidated income statement In all years subsequent to the disposal of the land, what workpaper entry will be necessary? 4. PC, owns 80% ofs.ca. S sells merchandise to P.at25%ahm ost. During 2015 intercompany sales amounted to 5240,000 and $300,000 respectively. At the end of both 2015and 2016, P had 30% ofthe goods chased that year bom sin its ending inventory. There were no intcrcompany sales prior to 2015. Prepore in genenil jourmal 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 years *