Pepper Corporation acquired 100 percent ot Salt Company stock on January 1 2018 f for $970,000 cash Following are pre-cdosing trial balance amounts for Pepper Corporation and Salt Company as SALT CORPORATION PEPPER CORPORATION Debit Credit- Deblt Credit 1,523,000 290,000 453,000 S323,000 74,000 156,000 s Receivable Inve Investment in Salt Corp. Land Buildings Equipment Cost of Goods Sold 225,000 360,000 196,000 197,000 18,000 21,000 57,000 750,000 25,000 15,000 51,000 ciatio nse, Buildin Deprediation Expense, Equipment Selling & Administrative Expense ividends Declared 209,000 204,000 144,000 118,000 580,000 54,000 105,000 67,000 50,000 Accumulated Deprediation, Bl Accounts Payable Bonds Payable Common Stock ($1p 2,400,000 ! ditional Paid In Capital Retained Eani 480,000 380,000 516,000 980,000 223,000 6,051,000 6,051,000 Income from Salt Corp. 1,762,000 1,762,000 1.On January 1,2018, the book values of Salt's net assets and liabilities approximated fair values. 2. Pepper Corporation uses the equity method to account for lts Investment in Salt Company. 3. The general ledger numbers given above (HINT: those in boldface) include the effects of the JOURNAL ENTRIES that were recorded by Pepper at the gcquisition date and during 2018 to account for its investment in Sait Company. These boldface figures should be used as check figures for your solution. a. Prepare the Investment Analysis for Pepper Company's Investment in Salt account (3 POINTS) Fair Value of Consideration gliven from Pepper Company to Fair Value of Any Noncontrolling interest Salt's Shareholders:$ Total Fair Value Book Value of Salt Company's Net Identifiable Assets Dilfferential (if anyl Identifiable Excess (if any) New Goodwill (if any) b. Recreate the JOURNA L ENTRIES recorded by Pepper with regard to its investment in Salt Company at January 1, 2018 and during 2018. (8 POINTS) b above, calculate the 12/31/18 balances for Pepper Company's Investment in Salt and Income from Salt accounts. Use the T accounts provided below. (4 POINTS) Pepper Company's General Ledger Investment in Salt Income from Salt d. Prepare the necessary CONSOLIDATION WORKSHEET ENTRY (or ENTRIES If you choose to prepare the optional accumulated depreciation entry) at December 31 2018 (9 POINTS)