Problem 1: Consolidations Peppers Corporation acquired an 80% interest in Sal Corporation for $250,000 on lanuary 1, 2017 Wthen Sal's stockholder's equity consisted of $200,000 of common stock and S25,000 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 statemen for r Peppers and Sal for the year ended December 31, 2018 are presented below: Financial Statements for Pepper and Sal for 2018 Income Statement Sales Co Sal Co 900,000 Cost of Goods Sold Operating Expenses 600,000 190.0 150 Net Income Statement of Retained Earnin Retained earnings 1 Add: Net Income Less: Dividends 122,000 50,000 60,000 Retained Earnings 12/31 Balance Sheet Assets Cash Accounts Receivable, net nvento 86,000 26,000 82,000 20,000 160,000 20,000 Advance to Sal Land Plant Assets, net Investment in Sal 30,000 330 230,000 Total Assets Liabilities & Equities Accounts Payable Dividends Payable Other Liabilities 15,000 24,000 100,000 700,000 10,000 45,000 Common Stock 200,000 90,0 Retained Earnin 170,000 Total Liabilities and Equities