pouto forward AherOg 17)On January 1, 2017, Purple Company acquired an 80% interest in Red Company for $500,000. The fair value of the rest 20% is $100,000. The book value of Red's equity on the acquisition date was $300,000 and the fair value of Red's identifiable assets was $450,000. On the acquisition date, Red's PPE, net was undervalued by $100,000 and the value of Red's unreported Patents was $50,000. The remaining life of Red's PPE, net was 10 years and that of Red's patents was 5 years. There were no intercompany transactions in 2018. Goodwill impairment in 2018 was $15,000. Red's reported net income in 2018 was $70,000. What was Purple's equity income from Red in 2018? Show all calculations. 18) On January 1, 2017, Purple Company acquired an 80% interest in Red Company for $500,000. The fair value of the rest 20% is $100,000. The book value of Red's equity on the acquisition date was $300,000 and the fair value of Red's identifiable assets was $450,000. On the acquisition date, Red's PPE, net was undervalued by $100,000 and the value of Red's unreported Patents was $50,000. The remaining life of Red's PPE, net was 10 years and that of Red's patents was 5 years. There are no intercompany transactions in 2018. Goodwill impairment in 2018 is $15,000. Red's reported net income in 2018 is $70,000. Red paid dividends of $11,000 to all shareholders in 2018 Based on the information provided above, prepare the consolidation entry (C) on 12/31/2018. MacBook Air 8 9