prepare W/p entries to eliminate dividend and convert to equity

QUESTION 11 7 poir 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 Valu $ Equipment Land 180,000 20,000 20,000 Inventory The book values of all other assets and liabilities of 5 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. 5 Company's net income and dividends declared in 2010 Net Income of $120.000: Dividends Declared of $30.000 14. Prepare jE at date of purchase Click Save and Submit to save and submit. Click Save AllAnwesto save all anera