Problem 2(40 points On January 1, 2020, Pilsner Company acquired as interest in Smalley Company for $3.600.000. On that date, Smalley Company had common stock af 800.000 and retained earnings of $2,800,000. The book values of assets and abilities were equal to far values except for the following Book Vales Fair Villas Inventory S 50,000 $ 56,000 Supplies 8.000 6.000 Salaries Payable 3.500 4,100 Equipment (net) $40,000 630,000 Land 300,000 460.000 The inventory was sold in 2020. The equipment had estimated remaining useful life of years. Peer Company was the cost method to record in investment in Smalley Company Required Prepare all the workpaper entry to allocate morireand depreciate the difference between implied and book van: a) 11.2000, (b) 12/31/2020 and 12/31/2021 Problem 2(40 points On January 1, 2020, Pilsner Company acquired as interest in Smalley Company for $3.600.000. On that date, Smalley Company had common stock af 800.000 and retained earnings of $2,800,000. The book values of assets and abilities were equal to far values except for the following Book Vales Fair Villas Inventory S 50,000 $ 56,000 Supplies 8.000 6.000 Salaries Payable 3.500 4,100 Equipment (net) $40,000 630,000 Land 300,000 460.000 The inventory was sold in 2020. The equipment had estimated remaining useful life of years. Peer Company was the cost method to record in investment in Smalley Company Required Prepare all the workpaper entry to allocate morireand depreciate the difference between implied and book van: a) 11.2000, (b) 12/31/2020 and 12/31/2021