Proud Corporation acquired 80 percent of Spirited Company's voting stock on January 1, 20X3, at underlying book value The fair value of the noncontrolling interest was equal to 20 percent of the book value of Spirited at that date. Assume that the accumulated depreciation on depreciable assets was $56,000 on the acquisition date. Proud uses the equity method in accounting for its ownership of Spirited. On December 31, 20X4, the trial balances of the two companies are as follows Proud Corporation Debit Spirited Compan Debit Credit Credit Item Current Assets Depreciable Assets Investment in Spirited Company Depreciation Expense Other Expenses Dividends Declared Ac $ 248,000 500,000 139,360 24,000 143,000 60,000 $166,000 311,000 14,000 84,000 23,800 cumulated Depreciation Current Liabilities Long-Term Debt Common Stock Retained Earnings Sales Income from Spirited Company $ 199,000 60,000 131,560 182,000 266,000 239,000 36,800 $1,114,360 $ 84,000 40,000 178,800 91,000 61,000 144,000 $1,114,360 $598,800 $598,800