Complete Equity with Downstream Sales LO 6 (Note: This is the same problem as Problem 6-11, but assuming the use of the complete equity method.) Pruitt Corporation owns 90% of the common stock of Sedbrook Company. The stock was pur- chased for $540,000 on January 1, 2017, when Sedbrook Company's retained earnings were $100,000. Preclosing trial balances for the two companies at December 31, 2021, are pre- sented here: Sedbrook Company $ 80,000 112,500 110,000 Cash Accounts Receivable (net) Inventory 1/1 Investment in Sedbrook Co. Other Assets Dividends Declared Purchases Other Expenses Pruitt Corporation $ 83,000 213,000 150,000 568,250 500,000 100,000 850,000 180,000 $2,644,250 400,000 30,000 350,000 137,500 $1,220,000 Accounts Payable Other Liabilities Common Stock Retained Earnings, 1/1 Sales Equity in Subsidiary Income Pruitt Corporation $ 70,000 75,000 800,000 532,000 1,100,000 67,250 $2,644,250 $ 200,000 Sedbrook Company $ 30,000 40,000 500,000 120,000 530,000 $1,220,000 $ 120,000 Ending Inventory The January 1, 2021, inventory of Sedbrook Company includes $30,000 of profit recorded by Pruitt Corporation on 2020 sales. During 2021, Pruitt Corporation made intercompany sales of $200,000 with a markup of 25% on cost. The ending inventory of Sedbrook Company includes goods purchased in 2021 from Pruitt for $50,000. Pruitt Corporation uses the complete equity method to record its investment in Sedbrook Company. Required: A. Prepare the consolidated statements workpaper for the year ended December 31, 2021. B. Calculate consolidated retained earnings on December 31, 2021, using the analytical or t-account approach. C. If you completed Problem 6-11, compare the consolidated balances obtained in requirement A with those obtained in that