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On January 1,2024, Peppermill Company acquired 60% of Salty Company's voting stock for $6,610. The...

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Accounting

On January 1,2024, Peppermill Company acquired 60% of Salty Company's voting stock for $6,610. The fair value of the 40%
noncontrolling interest was $3,990. Salty's net assets were reported at amounts approximating book value, but Peppermill
determined that Salty had the following previously unreported intangible assets:
Developed technology, fair value $2,000,5-year life
Favorable leases, fair value $400,4-year life
Salty's shareholders' equity on January 1,2024 was $3,200. It is now December 31,2025(two years later). There are no impairments
of identifiable intangibles in 2024 or 2025, but goodwill is impaired by $100 in 2025. Peppermill uses the complete equity method to
report its investment in Salty on its own books. Salty's December 31,2025 trial balance appears below.
When consolidating the trial balances of Peppermill and Salty at December 31,2025, eliminating entry (E) credits Investment in Salty
by
Select one:
a. $2,400
b. $3,200
C. $4,000
d. $2,600
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