On January 1, 2019, Platini Company acquired 80% of the common stock of Squillaci Company for $560,000. On this date Squillaci had total owners' equity of $540,000, including retained earnings of $240,000. During 2019, Squillaci had net income of $60,000 and paid no dividends. Any excess of cost over book value is attributable to land, undervalued $10,000, and to goodwill. *On January 1, 2020, Platini held merchandise acquired from Squillaci for $10,000. During 2020, Squillaci sold merchandise to Platini for $100,000, of which $20,000 is held by Platini on December 31, 2020. Squillacis usual gross profit on affiliated sales is 40%. On December 31, 2020, Platini still owes Squillaci $20,000 for merchandise acquired in December. On January 1, 2020, Platini sold to Squillaci some equipment with a cost of $50,000 and a book value of $20,000. The sales price was $40,000. Squillaci is depreciating the equipment over a five-year life, assuming no salvage value and using the straight-line method. As at December 31, 2020, the trial balances of Platini and Squillaci are provided on the next page. Required: Prepare the following statements Account Titles Trial Balance as at December 31, 2020 Platini Squillaci $ $ Inventory, December 31 100,000 80,000 Other Current Assets 253,000 450,000 Investment in Subsidiary 560,000 Other Long-Term Investments 50,000 30,000 Land 140,000 70,000 Buildings and Equipment 315,000 400,000 Accumulated Depreciation (208,000) (110,000) Other Intangibles 60,000 Current Liabilities (150,000) (100,000) Bonds Payable (100,000) Premium on Bonds Payable (5,000) Other Long-Term Liabilities (200,000) (150,000) Common Stock (200,000) (100,000) Other Paid-in Capital (100,000) (200,000) Retained Earnings (421,000) (300,000) Net Sales (600,000) (380,000) Cost of Goods Sold 350,000 180,000 Operating Expenses 140,000 100,000 Dividend Income (24,000) Gain on Sale of Equipment (20,000) Dividends Declared 60,000 30,000 TOTALS 0 0

Calculate the accounting equation