Public Company acquired 85% of the common stock of Sample Company January 1, year one, for $510,000 The consideration given was proportional to Sample's fair value. On that date, Sample had the following trial balance: credit $100,000 account Additional paid in capital debit Building (12-year life) $250,000 Common stock 170,000 Current assets 170,000 Equipment (6-yr life) 160,000 Land 110,000 Liabilities (due in 4 years) 300,000 Retained earnings 1/year 1 120,000 Totals $690,000 $690,000 During year one, Sample reported net income of During year one, Sample paid dividends of $60,000 $30,000 $80,000 $40,000 During year two, Sample reported net income of During year two, Sample paid dividends of On January 1, year one, fair values were $146,000 $274,000 $172,000 Land Building Equipment There was no impairment of any goodwill arising from the acquisition. Please indicate clearly which method you choose for Public to use to account for its acquisition of Sample Company. Problem 4. Use the data for the Public Company acquisition of the Sample Company to prepare the consolidation worksheet entries for December 31 of year one. For clarity, use the entry labels like S, A, I and so on. Problem 5. Use the data for the Public Company acquisition of the Sample Company to prepare the consolidation worksheet entries for December 31 of year two.