Palette Company acquired 100 percent of Saffron Companys outstanding common stock for $370,000 on January 1, 2X21, when the book value of Saffrons net assets was equal to $370,000. Palette chooses to carry the investment in Saffron at cost because the investment will be consolidated. Trial balance data for Palette and Saffron as of December 31, 2X21, are as follows:

	Palette	Saffron
Debit ($)	Credit ($)	Debit ($)	Credit ($)
Cash	122.000		46.000
Accounts Receivable	140.000		60.000
Inventory	190.000		120.000
Land	250.000		125.000
Building & Equipment	875.000		250.000
Investment in Scarlets Stock	370.000		-
COGS	250.000		155.000
Depreciation Expense	65.000		12.000
S&A Expenses	280.000		50.000
Dividends Declared	80.000		25.000
Accumulated Depreciation		565.000		36.000
Accounts Payable		77.000		27.000
Bonds Payable		250.000		100.000
Common Stock		625.000		250.000
Retained Earnings		280.000		120.000
Sales		800.000		310.000
Dividend Income		25.000		0
Total	2.622.000	2.622.000	843.000	843.000

Required

1. Prepare the journal entries on Palettes books for the acquisition of Saffron on January 1, 2X21, as well as any cost-method and elimination entries related to the investment in Saffron Company during 2X21!
2. Prepare consolidation worksheet for 2X21 in a good form!