Following are pre-closing trial balance amounts for Priya Corporation and Sheldon Company as of December 31, 2020: CORPORATION Credit $ $ SHELDON COMPANY Debit Credit 226,700 194,000 159,000 Cash Accounts Receivable Inventory Investment in Sheldon Corp. Buildings Land Equipment Cost of Goods Sold Depreciation Expense, Building Depreciation Expense, Equipment Selling & Administrative Expense Dividends Declared Accumulated Depreciation, Bldg Accumulated Depreciation, Equip Accounts Payable Bonds Payable Common Stock ($1 par) Additional Paid In Capital Retained Earnings (01/01/2020) Sales Income from Sheldon Corp. PRIYA Debit 549,600 294,000 473,000 991,700 625,000 790,000 531,000 382,000 62,500 53,100 173,000 80,000 196,000 238,000 223,000 219,000 12,900 32,400 118,600 55,000 $ $ 187,500 318,600 178,000 500,000 650,000 1,528,200 809,000 740,900 92,700 5,004,900 38,700 129,600 174,900 78,400 238,000 317,000 195,000 503,000 $ 5,004,900 $ $ 1,674,600 $ 1,674,600 Additional Information: 1. On January 1, 2020 the fair market value of Sheldon's assets equaled their book value with the exception of: Inventory - was overvalued by $9,000 (all this inventory was sold during 2020). Building | - was overvalued by $36,000 (remaining useful life was estimated to be 18 years). Land was by undervalued $57,000. Equipment - was undervalued by $78,000 (remaining useful life was estimated to be 5 years). The new Goodwill from the acquisition was impaired by $22,800 at year-end. 2. Priya Corporation uses the (full) equity method to account for its Investment in Sheldon Company. REQUIRED: a. Prepare the Investment Analysis for Priya Company's Investment in Sheldon account AT JANUARY 1, 2020 (10 POINTS) NOTE: BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF $1,000. IF THE ANSWER IS A NEGATIVE NUMBER, TYPE -1000 INSTEAD OF ($1,000). Fair Value of Consideration given from Priya Company to Sheldon's Shareholders IS: MINUS: Book Value of Sheldon Company's Net Identifiable Assets OF AJ EQUALS: Differential of: AJ MINUS: Identifiable Excess, which includes: Overvalued Inventory of (be sure to input this amount as a negative number with no comma) AV Overvalued Building of (be sure to input this amount as a negative number with no comma) Undervalued Land of (be sure to input this amount as a positive number with no comma) AJ Undervalued Equipment of (be sure to input this amount as a positive number with no comma) AJ EQUALS: Net Identifiable Excess of: New Goodwill at the acquisition date should be reported in the amount of: Following are pre-closing trial balance amounts for Priya Corporation and Sheldon Company as of December 31, 2020: CORPORATION Credit $ $ SHELDON COMPANY Debit Credit 226,700 194,000 159,000 Cash Accounts Receivable Inventory Investment in Sheldon Corp. Buildings Land Equipment Cost of Goods Sold Depreciation Expense, Building Depreciation Expense, Equipment Selling & Administrative Expense Dividends Declared Accumulated Depreciation, Bldg Accumulated Depreciation, Equip Accounts Payable Bonds Payable Common Stock ($1 par) Additional Paid In Capital Retained Earnings (01/01/2020) Sales Income from Sheldon Corp. PRIYA Debit 549,600 294,000 473,000 991,700 625,000 790,000 531,000 382,000 62,500 53,100 173,000 80,000 196,000 238,000 223,000 219,000 12,900 32,400 118,600 55,000 $ $ 187,500 318,600 178,000 500,000 650,000 1,528,200 809,000 740,900 92,700 5,004,900 38,700 129,600 174,900 78,400 238,000 317,000 195,000 503,000 $ 5,004,900 $ $ 1,674,600 $ 1,674,600 Additional Information: 1. On January 1, 2020 the fair market value of Sheldon's assets equaled their book value with the exception of: Inventory - was overvalued by $9,000 (all this inventory was sold during 2020). Building | - was overvalued by $36,000 (remaining useful life was estimated to be 18 years). Land was by undervalued $57,000. Equipment - was undervalued by $78,000 (remaining useful life was estimated to be 5 years). The new Goodwill from the acquisition was impaired by $22,800 at year-end. 2. Priya Corporation uses the (full) equity method to account for its Investment in Sheldon Company. REQUIRED: a. Prepare the Investment Analysis for Priya Company's Investment in Sheldon account AT JANUARY 1, 2020 (10 POINTS) NOTE: BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF $1,000. IF THE ANSWER IS A NEGATIVE NUMBER, TYPE -1000 INSTEAD OF ($1,000). Fair Value of Consideration given from Priya Company to Sheldon's Shareholders IS: MINUS: Book Value of Sheldon Company's Net Identifiable Assets OF AJ EQUALS: Differential of: AJ MINUS: Identifiable Excess, which includes: Overvalued Inventory of (be sure to input this amount as a negative number with no comma) AV Overvalued Building of (be sure to input this amount as a negative number with no comma) Undervalued Land of (be sure to input this amount as a positive number with no comma) AJ Undervalued Equipment of (be sure to input this amount as a positive number with no comma) AJ EQUALS: Net Identifiable Excess of: New Goodwill at the acquisition date should be reported in the amount of