On January 1, 2021, Pick Company acquired 100% of Safe Corporations common shares at underlying book value. Pick uses the equity method with consolidation in accounting for its ownership of Safe. On December 31, 2021, the trial balances of the two companies are as follows:

Pick Co.Safe Corp.ItemDebitCreditDebitCreditCurrent Assets $238,000 $95,000 Depreciable Assets300,000 170,000 Investment in Safe Co.100,000 Other Expenses90,000 70,000 Depreciation Expense30,000 17,000 Dividends Declared32,000 10,000 Accumulated Depreciation$120,000 $ 85,000 Current Liabilities50,000 30,000 Long-Term Debt120,000 50,000 Common Stock100,000 50,000 Retained Earnings175,000 35,000 Sales200,000 112,000 Income from Safe Co.25,000 $790,000 $790,000 $362,000 $362,000

1. Prepare the journal entries on Picks books for the acquisition of Safe on January 1, 2021, as well as any normal equity-method entry(ies) related to the investment in Safe during 2021.

2. Prepare a three-part consolidation worksheet (like the solution to P2-23 from the course text) as of December 31, 2021 in good form.