pharma Corporation acquired 60% of the voting stock of Santos Inc. at an acquisition cost of $210,000 on January 1, 2020. The fair value of the noncontrolling interest was $120,000. Santoss equity at the date of acquisition was as follows: Common stock $ 10,000 Additional paid-in capital 20,000 Retained earnings 50,000 Total $ 80,000 Santoss identifiable net assets were reported at values approximating fair value except that its inventories were undervalued by $10,000, its plant assets were overvalued by $25,500, and it had previously unreported identifiable intangible assets valued at $85,000. The entire beginning inventories were sold in 2020. The remaining useful life of plant assets and intangible assets was both five years with no salvage value. Santos used straight-line depreciation and amortization. During 2020, Santos had a net income of $48,000 and Other Comprehensive Loss of $5,000. On December 23, 2020, Santos declared and paid $10,000 cash dividend to its shareholders. Required: (1) Calculate equity in net income of Santos and non-controlling interest in net income for 2020. (Note: It is not necessary to make the schedule. Writing out the calculation is sufficient). (2) Prepare the working paper entries for PayPal Company and subsidiary for the year ended December 31, 2020.