Problem 1: On January 1, 2020, Pond Co. acquired 40% of the outstanding voting common shares of Ramp Co. for $700,000. On that date, Ramp reported assets and liabilities with book values of $2.2 million and $700,000, respectively. A building owned by Ramp had an appraised value of $300,000, although it had a book value of only $120,000. This building had a 10-year remaining life and no salvage value. It was being depreciated on the straight-line basis. Ramp generated a loss of $120,000 in 2021, and paid a cash dividend of $70,000 to its stockholders. During 2020, Ramp sold inventory to Pond for $96,000 at a 37.5% gross profit. Of this balance, $24,000 was still unsold at the end of 2020. In 2021, Ramp again sold inventory to Pond for $180,000 at a 40% gross profit. Of this balance, $60,000 was still unsold at the end of 2021. Required: Prepare all of Pond's journal entries for 2021 in relation to Ramp Co. Assume the equity method is appropriate for use. Show all your calculations clearly. No credit without any supporting work. kond Investment 7