This Problem is a modification of Equity Method Problem 1. Specifically, the modification is to assume that Hattiesburg purchased 40% of Senatoba Company for $460,000 on 1/1/12. we further assume that Hattiesburg hired a consultant to value Senatoba’s assets on 1/1/12 who reported the following information: The Consultant’s report indicated that no other assets could be identified as being mis-valued. Assume that the Equipment has a five-year life as of 1/1/12 and is being depreciated by Senatoba using the SL method. Consistent with the original information underlying Equity Method Problem 1, we assume that Senatoba Company reported the following balances in its equity accounts on 1/1/12: Required: Prepare Hattiesburg’s journal entry to record its investment in Senatoba on 1/1/12under the assumption that Hattiesburg will use the equity method to value its investment in Senatoba. Calculate and allocate the differential to specific asset categories based on the Consultant’s report. Assume that Senatoba earned a $200,000 net income and a $20,000 OCI gain during year 2012 Senatoba paid cash dividends of $100,000 in 2012. Calculate Senatoba’s Retained Earnings and total equity on 12/31/12. Prepare Hattiesburg’s 2012 journal entries for its investment in Senatoba and calculate the balance for the Investment in Senatoba on 12/31/12.