Workpaper Entries and Consolidated Net Income, Complete Equity Method LO5 LO6 LO 3 Perke Corporation purchased 80% of the stock of Superstition Company for $1,970,000 on January 1,2025 . On this date, the fair value of the assets and liabilities of Superstition Company was equal to their book value except for the inventory and equipment accounts. The inventory had a fair value of $725,000 and a book value of $600,000. Sixty percent of Superstition Company's inventory was sold in 2025; the remainder was sold in 2026 . The equipment had a book value of $900,000 and a fair value of $1,075,000. The remaining useful life of the equipment is seven years. The balances in Superstition Company's capital stock and retained earnings accounts on the date of acquisition were $1,200,000 and $600,000, respectively. Perke uses the complete equity method to account for its investment in Superstition. The following financial data are from Superstition Company's records