Lemon acquires 90% of Pepper on January 1st 2021 for $810K. At the time of the acquisition Pepper's Retained Earnings was $550K and Common Stock was $350K. During the year, Lemon sold $270K of inventory to Pepper's. The inventory originally cost Lemon $220K. At the end of the year, Pepper had $100K of that inventory on hand. The remainder had been sold to an outside party for $290K. Including the sale of the intercompany inventory to an outside party, Pepper had net income of $400K and no dividends were paid during the year. At the date of acquisition Lemons accumulated depreciation was $95K and Pepper's was $55K.a- Lemon accounts for Pepper under the fully adjusted equity method. Prepare any equity method adjustments that will be necessary for the full year ending December 31, 2021

Prepare all Elimination Entries at December 31, 2021