Problem 1: Consolidations Peppers Corporation acquired an 80% interest in Sal Corporation for $250,000 on lanuary 1, 2017 when Sal's stockholder's equity consisted of $200,000 of common stock and $25,000 of retained earnings. At that time, plant assets had fair value of $280,000. The remainder of the assets and liabilities were fairly valued. The plant assets had a 4-year remaining useful life. Financial statements for Peppers and Sal for the year ended December 31,2018 are presented below: Income Statement Sales Income from Sal Cost of Goods Sold Pepper Co Sal Co 300,000 38,000 600,000 190,000 150,000 90,000 Net Income Statement of Retained Earnin Retained earnings 1/1 Add: Net Income Less: Dividends 122,000 148,000 100,000 50,000 60,000 20,000 Retained Earnings 12/31 Balance Sheet Assets Cash Accounts Receivable, net Invento Advance to Sal Land Plant Assets, net Investment in Sal 86,000 26,000 82,000 20,000 160,000 20,000 60,0 Total Assets Liabilities & Equities Accounts Payable Dividends Payable Other Liabilities 24,000 100,000 700,000 15.000 10,000 45,000 200,000 90,0000 Common Stock Retained Earnin 170,000 Total Liabilities and Equities