PRINTER VERSION BACK NEXTH Problem 6-8 On January 2, 2014, Patten Company purchased a 90% interest in Sterling Company for $1,387,000. At that time Sterling Company had capital stock outstanding of $797,100 and retained earnings of $423,000. The difference between book value of equity acquired and the value implied by the purchase price was allocated to the following assets: Inventory Plant and Equipment (net) $41,500 200,100 79,411 Goodwill The inventory was sold in 2014. The plant and equipment had a remaining useful life of 10 years on January 2, 2014. During 2014 Sterling sold merchandise with a cost of $945,400 to Patten at a 20s markup above cost. At December 31, 2014, Patten still had merchandise in its inventory that it purchased from Sterling for $572,100. In 2014, Sterling Company reported net income of $411,900 and declared no dividends. v (a) Prepare in general journal form all entries necessary on the consolidated financial statements workpaper to eliminate the effects of the intercempany sales, to eliminate the investment account, and allocate the difference between book value of equity acquired and the value implied by the purchase price. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automaticaity indented when the amount is entered. Do not indent manually. Round answers to o decimal places, eg. 5,125.) Credit Debit Account Titles and Explanation (To eliminate intercompany sales for 2014) (To eliminate intercompany sales for 2014) (To eliminate unrealized profit in ending Inventory) (To eliminate the investment account) (To allocate the difference between book value of equity acquired and the value implier by the purchase price)