QUESTION 11 Please use the following question to answer questions 14-20 On January 1, 2010, P Company purchased an 80% interest in s Company for $900,000. At that time, 5 Company had capital stock of $600,000 and retained earnings of $100,000. Differences between the fair value and the book value of the identifiable assets of Salem Company were as follows: Fair value in Excess of Book Value S Equipment Land Inventory 180,000 20,000 20,000 The book values of all other assets and liabilities of S Compaty were equal to their fair values on January 1, 2010. The equipment had a remaining life of five years. The inventory was sold in 2016. s Companys net income and dividends declared in 2010 Net Income of $120,000; Dividends Declared of $30,000 QUESTION 14 17. Prepare /e under cost method for Nl and Dividends (see above question) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). TT T Arin 3 (12pt) T 22 1 Pathe Words: QUESTION 15 18. Prepare W/P entries to eliminate Dividends and convert cost to equity (see above question) TT T Arial 3 (12pt) 111 Path Words