Case 1 Payton Corporation buys 80 percent of Sheilla Company on January 1, 2017, for $150,000. At the time, Sheilla's common stock was $100,000 and retained earnings totaled $80,000. It was determined that Sheilla's assets and liabilities were all at their fair value except for land. The trial balances of Payton and Sheilla on December 31, 2017, are listed below. Sheilla Company Debit Credit $ 10,000 11,000 9,000 185,000 80,000 Cash Receivables (net) Inventory, January 1 Investment in s Plant and equipment (net Land Accounts payable Other liabilities Common stock ($10 par) Retained earnings, January 1 Dividends declared Sales Dividend income Purchases Expenses Payton Corporation Debit Credit $ 25,000 10,000 15,000 150,000 225,000 100,000 $ 24,000 80,000 250,000 135,000 15,000 130,000 16,000 55,000 40,000 $635.000 S635.000 $ 10,000 100,000 100,000 80,000 20,000 75,000 25,000 25,000 S365.000 $365.000 Inventory, December 31 $12,000 $10,000 B. Record the entries in Payton's books to reflect its transactions with Sheilla in 2017, assuming the cost method. (10%) Coco 2