Feustel Company acquired 100% of Schmitt Companys common stock for $1,000,000 in cash on Jan. 1, 2017. At that date, Schmitts $750,000 of net assets (aka book value of equity) were fairly stated, except a building that was overvalued by $75,000 (estimated useful life of 15 years, straight-line) and a $100,000 undervalued piece of equipment (estimated useful life of 5 years, straight-line). Schmitt also had an unrecorded patent of 100,000 (useful life of 10 years, straight- line). Feustel Company accounts for its investment in Schmitt Company using the equity method. The following financial statements are reported at December 31, 2021:

Income Statement Feustel Schmitt Sales $4,160,000 $401,600 COGS (3,098,100) (232,700) Gross Profit 1,061,900 168,900 Income (loss) from subsidiary 54,000 Operating expenses. (732,200) (89,900) Net income $ 383,700 $ 79,000

Statement of Retained Earnings Feustel Schmitt BOY Retained Earnings $2,696,120 $395,500 Net income 383,700 79,000 Dividends (74,500) (9,500) EOY Retained Earnings $3,005,320 $465,000

Balance Sheet Feustel Schmitt Assets: Cash $ 211,620 $ 84,700 Accounts receivable 433,600 113,200 Inventory 641,900 142,100 Equity Investment 969,500 PPE, net 4,063,200 800,500 $6,319,820 $1,140,500

Liabilities and Stockholders Equity: Current Liabilities $ 620,500 $ 46,000 Long-term Liabilities 703,500 250,000 Common Stock 402,000 135,000 APIC 1,588,500 244,500 Retained Earnings 3,005,320 465,000 $6,319,820 $1,140,500

Prepare the consolidation spreadsheet. What is provided in the Excel document is the same as the information provided above. Add or delete rows if necessary to accommodate your solution/consolidation entries.