On January 1, 2021, Parrietta Company purchased 85% of the outstanding common stock of Somfy Company for $525,000. On that date, Somfy Companys stockholders equity consisted of common stock, $150,000; other contributed capital, $60,000; and retained earnings, $210,000. Parrietta Company paid more than the book value of net assets acquired because the recorded cost of Somfy Companys land was significantly less than its fair value.

During 2021, Somfy Company earned $222,000 and declared and paid a $75,000 dividend. Parrietta Company used the complete equity method to record its investment in Somfy Company.

Required:

A. Prepare the investment related entries on Parrietta Companys books for 2021.

B. Prepare the workpaper eliminating entries on December 31, 2021.