please explain every single calculation and step

Illustration #5 Pepper Company, which is a calendar-year-reporting company, purchased 80% of the common stock of Salt Inc. for $260,000 on 12/31/19. The total fair value of the controlling and non-controlling interests in the subsidiary is $325,000. On the acquisition date, the following net assets of Salt had fair values different than book value: Cost FMV Inventory 80,000 75,000 Turnover 6 times per year Land 70,000 100,000 Building and equipment 220,000 210,000 10 year life Accumulated depreciation (60,000) Covenant-not-to-complete 40,000 4 year life Bonds payable 150,000 175,000 10 years to maturity During the year ending December 31, 2020, there were no transactions involving the stock of Salt Company. Required: a. Prepare the journal entries made by Pepper Co. to reflect the acquisition of Salt on 12/31/19 and the application of the equity method of accounting during the year ending 12/31/20. b. Complete the "Illustration #5 worksheet to show the consolidation on 12/31/20. Illustration #5 Consolidation Date 12/31/20 Income Statement ending 12/31/20 Consolidation Entries Debit Credit Salt Co. Consolidated Sales Cost of sales Depreciation expense Interest expense Other expenses Income from Salt Pepper Co. (950,000) 520,000 30,000 7,000 338,000 (42,000) (600,000) 300,000 22,000 15,000 203,000 Net Income (97,000) (60,000) Statement of Retained Earnings Balances, beginning 1/1/20 Net income Dividends declared Balances, 12/31/20 (350,000) (97,000) 80,000 (367,000)| (90,000) (60,000) 35,000 (115,000) Balance Sheet as of 12/31/20 Cash Accounts receivable Inventory Investment in Salt Land Buildings and equipment Accumulated depreciation 128,000 95,000 115,000 274,000 100,000 52,000 60,000 120,000 150,000 (110,000) 70,000 220,000 (82,000) Total Assets 752,000 440,000 Payables and accruals Bonds payable Common stock Additional paid-in capital Retained earnings (65,000) (20,000) (40,000) (260,000) (367,000) (75,000) (150,000) (20,000) (80,000) (115,000) Total Liab. and Equity (752,000) (440,000)