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[II] Python Corporation buys 80 percent of Shark Company on January 1, 2013, for $150,000. At the time, Shark's common stock was $100,000 and retained earnings totaled $80,000. It was determined that Shark's assets and liabilities were all at their fair value except for land. The trial balances of Python and Shark on December 31, 2013, are listed below. Shark Company Debit Credit $ 10,000 9,000 Python Corporation Debit Credit Cash $ 25,000 Receivables (net) 10,000 11,000 Inventory, January 1 15,000 Investment in S 150,000- Plant and equipment (net) 225,000 185,000 Land 100,000 Accounts payable $ 24,000 Other liabilities 80,000 Common stock ($10 par) 250,000 Retained earnings, January 1 135,000 Dividends declared 15,000 Sales 130,000 Dividend income 16,000 80,000 $ 10,000 100,000 100,000 80,000 20,000 75,000 Purchases 55,000 25,000 25,000 Expenses 40.000 $635.000 $635,000 $365,000 $365.000 Inventory, December 31:4 $12,000 $10,000 A. Find the difference between implied and book value B. Record the entries in Python's books to reflect its transactions with Shark in 2013, assuming the cost method. To record initial investment To record P's share of S's dividends C. Prepare the workpaper entries on December 31, 20134 To eliminate P's share of S's equity 1 7 e t To allocate the difference between implied and book value To eliminate P's share of S's dividends 1 2

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