Please use the following question to answer questions 14-20 On January 1, 2010, P Company purchased an 80% interest in s Company for $900,000. At that time, s Company had capital stock of $600,000 and retained earnings of $100,000. Differences between the fair value and the book value of the identifiable assets of Salem Company were as follows: Fair value in Excess of Book Value $ Equipment Land Inventory 180,000 20,000 20,000 The book values of all other assets and liabilities of S Company were equal to their fair values on January 1, 2010. The equipment had a remaining life of five years. The inventory was sold in 2010. s Company's net income and dividends declared in 2010 Net Income of $120,000; Dividends Declared of $30,000 Prepare W/P to allocate differences (all inventory has been sold), and the extra depreciation entry (see astion) Please use the following question to answer questions 14-20 On January 1, 2010, P Company purchased an 80% interest in s Company for $900,000. At that time, s Company had capital stock of $600,000 and retained earnings of $100,000. Differences between the fair value and the book value of the identifiable assets of Salem Company were as follows: Fair value in Excess of Book Value $ Equipment Land Inventory 180,000 20,000 20,000 The book values of all other assets and liabilities of S Company were equal to their fair values on January 1, 2010. The equipment had a remaining life of five years. The inventory was sold in 2010. s Company's net income and dividends declared in 2010 Net Income of $120,000; Dividends Declared of $30,000 Prepare W/P to allocate differences (all inventory has been sold), and the extra depreciation entry (see astion)