Following are separate financial statements of Michael Company and Aaron Company as of December 31, 2021 (credit balances indicated by parentheses). Michael acquired all of Aaron's outstanding voting stock on January 1, 2017, by issuing 20,000 shares of its own $1 par common stock. On the acquisition date, Michael Company's stock actively traded at $30.00 per share. Michael Company Aaron Company 12/31/21 $ (745,000) 337,500 12/31/21 $ (477,000) Revenues Cost of goods sold Amortization expense Dividend income Net income Retained earnings, 1/1/21 Net income (above) Dividends declared 193,500 132,900 (5,000) 100,500 0 $ (279,600) $ (956,000) (279,600) 90,000 $ (183,000) $ (651,000) (183,000) 5,000 Retained earnings, 12/31/21 $ (1,145,600) $ (829,000) Cash Receivables Inventory Investment in Aaron Company Copyrights Royalty agreements Total assets Liabilities Preferred stock Common stock Additional paid-in capital Retained earnings, 12/31/21 Total liabilities and equity $ 171,000 $ 21,400 459,000 285,000 614,000 357,000 600,000 0 500,000 1,010,000 $ 3,354,000 $ (1,108,400) (300,000) (500,000) (300,000) (1,145,600) $(3,354,000) (100,000) (30,000) (829,000) $ (1,490,400) 391,000 436,000 $ 1,490,400 $ (531,400) 0 On the date of acquisition, Aaron reported retained earnings of $360,000 and a total book value of $490,000. At that time, its royalty agreements were undervalued by $60,000. This intangible was assumed to have a six-year remaining life with no residual value. Additionally, Aaron owned a trademark with a fair value of $50,000 and a 10-year remaining life that was not reflected on its books. Aaron declared and paid dividends in the same period. a. Using the preceding information, prepare a consolidation worksheet for these two companies as of December 31, 2021.