NOTE: EDUCATIONAL RESEARCH INDICATES THAT HANDWRITING YOUR SOLUTION MAY RESULT IN BETTER UNDERSTANDING AND RETENTION OF THE MATERIAL. Priya Corporation acquired 100 percent of Sheldon Company stock on January 1, 2021, for $965,000 cash. Following are pre-closing trial balance amounts for Priya Corporation and Sheldon Company as of December 31, 2021: PRIYA CORPORATION Debit Credit SHELDON Debit CORPORATION Credit Cash $751,800 $318,700 Accounts Receivable 294,000 197,000 Inventory 473,000 210,000 Investment in Sheldon Corp. 1,243,100 Buildings 625,000 292,500 807,000 291,000 Equipment 315,000 345,000 Cost of Goods Sold 342,000 211,000 Depreciation Expense, Building 58,600 Depreciation Expense, Equipment 41,300 24,700 Selling & Administrative Expense 159,000 119,600 Dividends Declared 60,000 40,000 Accumulated Depreciation, Bldg $243,400 $55,800 Accumulated Depreciation, Equip 156,200 74,100 Accounts Payable Bonds Payable Common Stock ($1 par) 178,000 172,800 540,000 108,400 659,000 315,000 Additional Paid In Capital 1,525,800 415,000 Retained Earnings (01/01/2021) 788,500 235,000 Sales 760,800 692,000 Income from Sheldon Corp. 318,100 $5,169,800 $5,169,800 $2,068,100 $2,068,100 Additional Information: 1. On January 1, 2021, the book values of Sheldon's net assets and liabilities approximated fair values. 2. Priya Corporation uses the equity method to account for its Investment in Sheldon Company. 3. The general ledger numbers given above (HINT: those in boldface) include the effects of the JOURNAL ENTRIES that were recorded by Priya at the acquisition date and during 2021 to account for its investment in Sheldon Company. These boldface figures should be used as check figures for your solution. REQUIRED: CLEARLY SHOW ALL OF YOUR WORK). a. Prepare the Investment Analysis for Priya Company's Investment in Sheldon account ON JANUARY 1, 2021 (4POINTS) Fair Value of Consideration given from Priya Company to Sheldon's Shareholders: MINUS: Book Value of Sheldon Company's Net Identifiable Assets MINUS: EQUALS: Differential (if any) NEW GOODWILL (IF ANY) b. Recreate the JOURNAL ENTRIES recorded by Priya to account for its investment in Sheldon Company on January 1, 2021, and during 2021. (10 POINTS) c. Using your information from b. above, calculate the 12/31/21 balances for Priya Company's Investment in Sheldon and Income from Sheldon accounts. Use the Taccounts provided below. (USE AS A CHECK POINT - 0 POINTS) Investment in Sheldon Priya Company's General Ledger Income from Sheldon d. Prepare the necessary CONSOLIDATION WORKSHEET ENTRY on December 31, 2021. (20 POINTS) e. Prepare the consolidation worksheet for the period ended December 31, 2021. Use the (picture format) template provided below. (20 POINTS) Accounts PRETA CORPORATION Consolidation Worksheet For the Period Ending December 13, 2011 PRIYA'S GA SHELDON'S GAL CONSOLATION ENTRES Consolidated Debit Credit Totals Sales 5 760,800 132,000 Lou Cast of Goods Sold $ Less Depreciation Expense Building 42,000 S (588000 211,000 [18,600 Less Depreciation Expense Ext (41,300 5 124,700 Lou Selling & Administrative Expense 59,000 1119,6000 Income from Sheldon Corp. 318100 S 478,000 Statement of Retaini Retained Earnings (01/01/2011) S Net income 5 788,500 478,000 235,000 318,100 Dividends Declared $ G0,000 0 Retained carvings. 12/51/11 1,205,500 313,100 Balance Sheet Cash Accounts Receivable Investment in Sheldon Carp luiding Land Accumulated Depreciation Accumulated Depreciation Total Ass Accable Bendable Common Stock $ Additional Paid in Capital Rendering 12/31/21 (above) Total Liabilities & Stockholder Equity NET ASSETS ASSETS-LIABLITIES TOTAL STOCKHOLDERS EQUITY 751,000 $ 234,000 5 3 318,700 197,000 210,000 1,243,100 625,000 807,000 292,500 $ 315,000 $ 1242,400) $ 291,000 345,000 55,00 4,509,300 1524300 S 178,000 540,000 $59,000 $ 1,525,000 172,800 108,400 S 315,000 1.205.500 S 415,000 513.300 4,509,300 1,524,330 2