POPCORN Corporation acquired an 80 % interest in the outstanding stock of SALT Corporation for $520,000 on 1/1/X1. At this time, the stockholders' equity of SALT consisted of $400,000 of capital stock and $50,000 of retained earnings. The following table represents only those assets and liabilities of Salt which had book values different than their fair values at the date of acquisition: Book Value Fair Value Inventory $ 20,000 $ 15,000 Sold X1 Land 30,000 40,000 Still owned Buildings 10,000 50,000 Remaining life 5 years Notes Payable (50,000) (40,000) Matures on 12/31/X4 Comparative Balance Sheets for POPCORN and SALT AT 12/31/X3 are presented here: Popcorn Salt Assets: Other Assets $318,000 $100,000 Inventory 100,000 50,000 Land 500,000 100,000 Buildings-net 1,500,000 580,000 Investment in Salt 658,800 Dividends Receivable 24,000 Advance Receivable from P 10,000 Total Assets $3,100,800 $840,000 Liabilities & Equity: Other Liabilities (includes notes pay) $500,000 $160,000 Dividends Payable 30,000 Advance Payable to Salt 10,000 Capital Stock 2,000,000 400,000 Retained Earnings 590,800 250,000 Total Liabilities and Equity $3,100,800 $840,000Amortization Schedule: Differences Amortization Amortization Amortization Differences Account @ 1/1/X1 20X1 20X2 20X3 @ 12/31/X3 Inventory 20,000 0 (20,000) Land 30,000 Building 10,000 2,000 2,000 2,000 4,000 Notes payable (50,000) (12,500) (12,500) (12,500) Goodwill (12,500) 200,000 0 0 0 200,000 Total Differences Salt's BV at 12/31/X3 XXXXXXXXX XXXXXXXX Salt's Equity FV OOOXXXXX 00XXXX P's Investment in Salt XOOXOOXXXX Non-Controlling Interest in Salt )000XXXCalculate the Difference (or Excess) 1 X F . A- BI / 0. Implied cost 650,000 (520,000/80%%) BY 450,000 Difference 200,000 Calculate Goodwill/(Bargain Purchase Gain) 7 X Fr A- BIZ ?- Implied cost 650,000 (520,000/80%%) FVM 450,000 (450,000+10,000+30,000+10,000-50,000) Goodwill 200,000Popcorn Corporation & Subsidiary Consolidated Balance Sheet Workpaper for the year ended 12/31/X3 Eliminations Popcorn Salt Debits Credits Consolidated Assets: Other Assets 318,000 100,000 Inventory 100,000 50,000 Land 500,000 100,000 Buildings-net 1,500,000 580,000 Investment in Salt 658,800 Dividends Receivable 24,000 Advance Receivable from P 10,000 Total Assets 3,100,800 840,000 Liabilities & Equity: Other Liabilities (includes notes pay) 500,000 160,000 Dividends Payable 30,000 Advance Payable to Salt 10,000 Capital Stock 2,000,000 400,000 Retained Earnings 590,800 250,000 Total Liabilities and Equity 3,100,800 840,000 Debit/Credit elimination columns must be totalled and they should be equalPrepare all necessary eliminating entries at 12/31/X3. Hint - there are 4. 7 Fr A BI/