Pepper Company, which is a calendar-year-reporting company, purchased 100% of the common stock of Salt Inc. for $325,000 on 12/31/19. Pepper declared dividends of $80,000 and Salt declared dividends of $10,000 during 2019. Each company's financial statements for the year ended 12/31/19 immediately after the acquisition are as follows: Income Statement (2019) Sales Cost of sales Expenses Net Income Pepper Co. (900,000) 500,000 260,000 (140,000) Salt Co. (500,000) 250,000 202,000 (48,000) 20,000 70,000 80,000 Balance Sheet (as of 12/31/19) Cash Accounts receivable Inventory Investment in Salt Land Buildings and equipment Accumulated depreciation Total Assets 45,000 75,000 105,000 325,000 100,000 250,000 (150,000) 750,000 70,000 220,000 (60,000) 400,000 Payables and accruals Bonds payable Common stock Retained earnings Total Liabilities and Equity (80,000) (20,000) (300,000) (350,000) (750,000) (60,000) (150,000) (100,000) (90,000) (400,000) Required: Prepare a consolidation worksheet on the acquisition date of 12/31/19. The net assets of Salt had fair values different than book value on the acquisition date as follows. Cost FMV Inventory 80,000 75,000 Land 70,000 100,000 Building and equipment, net 160,000 210,000 Covenant-not-to-complete 40,000 Bonds payable 150,000 175,000