PROBLEM 5-10 Workpaper Entries for Year of Acquisition LO 5 LO 6 Pearson Company purchased a 100% interest in Sanders Company and a 90% interest in Taylor Company on January 2, 2019, for $800,000 and $1,300,000, respectively. The account balances and fair values of the acquired companies on the acquisition date were as follows: Sanders Taylor Book Value Fair Value Book Value Fair Value Current assets $ 200,000 $200,000 $ 350,000 $350,000 Inventory 400,000 400,000 500,000 575,000 Plant and equipment (net) 300,000 350,000 600,000 600,000 Land 600,000 600,000 550,000 625,000 Total $1,500,000 $2,000,000 Current liabilities $ 500,000 $500,000 $ 300,000 $300,000 Bonds payable 300,000 300,000 600,000 600,000 Capital stock 500,000 800,000 Retained earnings 200,000 300,000 Total $1,500,000 $2,000,000 Sanders Companys equipment has a remaining useful life of 10 years. Two-thirds of Taylor Companys inventory was sold in 2019, and the rest was sold in the following year. In 2019, Sanders Company reported net income