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On Januery 1,20X0. Pepper Corporation is Lued 9,000 of its $10 par value shares to acquire 45 percent of the shares of Salt Manufacturing. Salt Manufacturing's bolance sheet immediotely before the ocquisition contoined the following items: On the dote of the stock aequisition, Pepper's shores were selling at $35, and Salt Monufacturing's buildings ond equipment hod a remoining economic life of 5 yeors. The omount of the differentiol assigned to goodwill is not impaired. In the two yeors following the stock acquisition, Salt Monufocturing reported net income of $88.000 ond $58,000 and poid dividends of $29,000 and $48,000, tespectively. Pepper used the equity method in accounting for its ownership of Solt Manufacruring- Required: a. Prepore the entry recorded by Pepper Corporation ot the time of acquisition. Note: If no entry is required for a transaction/event, select "No journal entry required" In the first account field. Journal entry worksheet Record the acuuistion of salt Manulacturing. b-1. Prepare the joumal entries recorded by Pepper during 20 a reloted to its investment in Solt Monufacturing. Note: If no entry Is required for a transaction/event, select "No journal entry required" In the first account field. Journal entry worksheet D Phecard the acquisition of Salt Manufacturing. b-1. Prepare the journal entries recorded by Pepper during 200 related to its investment in Salt Manufocturing. Note: If no entry is required for a transaction/event, select "No journal entry required" In the first account field. A Record the acquisition of Salt Manufacturing

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