The working paper elimination for Popcorn Corporation and subsidiary, Soda Inc, on December $31,$ Year $1,$ the date of the purchase$-$type business

combination, was as follows:

Common Stock $$1$ Par $($Soda$)75000$

Paid$-$in Capital in Excess of Par $($Soda$)125000$

Retained Earnings $($Soda$)225000$

Inventories $($Soda$)($FIFO cost$)25000$

Land $($Soda$)60000$

Other Plant Assets $($Soda$)(10-$year economic life$)100000$

Goodwill $($Soda$)50000$

Investment in Soda Common Stock $($Popcorn$)660000$

MEMO: To eliminate intercompany

investment and equity accounts of

subsidiary on date of business

combination; and to allocate excess of

cost over carrying amounts of

identifiable assets acquired, with

remainder to goodwill. $($Income tax

effects are disregarded$).$

For the fiscal year ended December $31,$ Year $2,$ Soda Company reported net income of $$80,000.$ Soda declared a cash dividend of $$0\mathrm{.}40$ a share on

December $1,$ Year $2,$ and paid the dividend on August $15,$ Year $2.($Soda had not declared or paid dividends during the year ended December $31,$

Year $1.)$ Soda uses the straight$-$line method for depreciation expense and amortization expense both of which are included in operating expenses.

$$ Prepare journal entries in the accounting

records of Popcorn Corporation to record the

operating results of Soda Company for the

year ended December $31,$ Year $2,$ under the

equity method of accounting.

Disregard income taxes.

Prepare the T$-$accounts for Popcorn

Corporation$$s $$Investment in Soda Common

Stock$$ and $$Intercompany Investment Income$$

and post the journal entries in a$.$

Prepare a working paper elimination for

Popcorn Corporation and subsidiary on

December $31,$ Year $2,$ in journal entry form.

Disregard income taxes.