Reference no: EM132570496

Question - On January 1, 2019, Plymouth Corporation purchased an 80% interest in Salem Company for $800,000. A summary of Salem's balance sheet on that date revealed the following:

	Book Value	Fair Value
Receivables	$100,000	$100,000
Inventory	350,000	370,000
Equipment	500,000	650,000
Land	250,000	330,000
	$1,200,000	$1,450,000
Liabilities	$300,000
Common stock	500,000
Retained earnings	400,000
	$1,200,000

The equipment had an original life of 20 years and has a remaining useful life of 10 years.

Required -

A. Calculate the difference between implied and book value solve in Microsoft word please.

B. Determine the allocation of the difference between implied and book value solve in Microsoft word please.

C. For the January 1, 2019, Prepare the eliminating/adjusting entries needed on the consolidated workpaper solve in Microsoft word please.