Jade Company acquired an 80 percent interest in Sapphire Company on January 2, 2020, for $290,000, when Sapphire Companys stockholders equity consisted of $300,000 capital stock and no retained earnings. The excess of investment fair value over book value of the net assets acquired related 50 percent to undervalued inventories (subsequently sold in 2020) and 50 percent to a goodwill.

The following are financial statements for Jade Company and Sapphire Company Corporation for 2021:

	Jade Company	Sapphire Company
INCOME STATEMENT
Sales	$ 198,000	$ 140,000
Income from Sapphire Company	18,000	-
Gain on sale of land	10,000	-
Gain on sale of equipment	15,000	-
Other expenses	(110,000)	(60,000)
Depreciation Expenses	(40,000)	(30,000)
Net income	91,900	50,000
STATEMENT OF RETAINED EARNINGS
Retained Earnings, Jan 1	104,400	31,250
Add: Net income	91,900	50,000
Less: Dividends	(30,000)	-
Retained Earnings Dec 31	202,300	81,250
STATEMENT OF FINANCIAL POSITION
Current assets	214,300	151,250
Land	100,000	100,000
Equipment	450,000	250,000
Accumulated depreciation	(120,000)	(70,000)
Investment in Sapphire Company	308,000	-
TOTAL ASSETS	952,300	431,250
Accounts payable	150,000	50,000
Capital Stock	600,000	300,000
Retained Earnings	202,300	81,250
TOTAL LIABILITIES & EQUITIES	952,300	431,250

Additional information:

On January 1, 2021 Jade Company sold equipment to Sapphire Company for $25,000. The book value of the equipment was $10,000 with five-year remaining useful life.

During 2021, Jade Company also sold land to Sapphire Company at profit of $10,000.

Jade Company uses the equity method to accounting for its investment.

REQUIRED:

Prepare a consolidation workpapers for Jade Company and Subsidiary for the year ended December 31, 2021. Show computations for goodwill and non-controlling balances.