P Corporation owns 90% of the common stock of S Company. The stock was purchased for $810,000 on January 1, 2017, when S Company's retained earnings were $150,000. Financial data for 2021 are presented here:

Net Income $ 140,625 $ 71,250 1/1 Retained Earnings 798,000 180,000 Net Income 140,625 71,250 Dividends Declared (150,000) (60.000) 12/31 Retained Earnings $ 788,625 $ 191,250 Cash $93,000 $75,000 Accounts Receivable 319,500 168,750 Inventory 210,000 172,500 Investment in S Company 833,625 Other Assets 750,000 630,000 Total Assets $2,206,125 $1,046,250 Accounts Payable 105,000 45,000 Other Current Liabilities 112,500 60,000 Capital Stock 1,200,000 750,000 Retained Earnings 788.625 191.250 Total Liabilities and Equity $2,206,125 $1,046,250 The January 1, 2021, inventory of P Corporation includes $45,000 of profit recorded by S Company on 2020 sales. During 2021, S Company made intercompany sales of $300,000 with a markup of 20% of selling price. The ending inventory of P Corporation includes goods purchased in 2021 from S Company for $75,000. P Corporation uses equity method to record its investment in S Company. Required: Prepare the consolidated statements workpaper for the year ended December 31, 2021 (40%)Case 2 P Corporation owns 90% of the common stock of S Company. The stock was purchased for $810,000 on January 1, 2017, when S Company's retained earnings were $150,000. Financial data for 2021 are presented here: P Company S Company Sales $1,650,000 $ 795,000 Equity in Subsidiary Income 91,125 Total Revenue 1,741,125 795,000 Cost of Goods Sold: Beginning Inventory 225,000 165,000 Purchases 1.275.000 525,000 Cost of Goods Available 1,500,000 690,000 Less: Ending Inventory 210.000 172.500 Cost of Goods Sold 1,290,000 517,500 Other Expenses 310.500 206.250 Total Cost and Expense 1,600.500 723.750