Problem III (18 points) Stock Acquisition On January 1, 2014, Pitt Company purchased 85% of the outstanding common stock of Starr Company for S525,000. On that date, Starr Company's stockholders' equity consisted of common stock, $150,000; other contributed capital, $60,000; and retained earnings, $210,000. Pitt Company paid more than the book value of net assets acquired because the recorded cost of Starr Company's land was significantly less than its fair value. During 2014 Starr Company earned $222,000 and declared and paid a $75,000 dividend. Pitt Company used the partial equity method to record its investment in Starr Company. Required: A. Prepare the investment related entries on Pitt Company's books for 2014 (6 points). B. Prepare a Computation and Allocation of Difference Schedule between cost and book value on January 1 2014 6 points). C. Prepare the workpaper eliminating entries for consolidation on December 31, 2014 (6 points) 1-3