Peanut Company acquired 80 percent of Snoopy Company's outstanding common stock for $260,000 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $325,000. Peanut uses the equity method to account for investments. The following trial balance summarizes the financial position and operations for Peanut and Snoopy as of December 31, 20X9: Cash Accounts Receivable Inventory Investment in Snoopy Company Land Buildings and Equipment Cost of Goods sold Depreciation Expense Selling & Administrative Expense Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Retained Earnings Sales Income from Snoopy Company Total Peanut Company Debit Credit $ 259,000 199,000 197,000 312,200 210,000 704,000 325,000 44,000 225,000 220,000 $ 481,000 59,000 149,000 486,000 596,200 843,000 81,000 $2,695,200 $2,695, 200 Snoopy Company Debit Credit $ 94,000 99,000 111,000 0 89,000 180,000 152,000 11,000 45,750 41,000 $ 33,000 33,000 116,750 184,000 146,000 310,000 0 $ 822,750 $822,750 b. Prepare a consolidation worksheet for 20X9. Assume the company prepares the optional Accumulated Depreciation Consolidation Entry and that the depreciation expense was the same amount in both 20X8 and 20X9. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entrles" columns should be entered as positive values. For accounts where multiple adjusting entrles are required, combine all deblt entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries Into one amount and enter this amount in the credit column of the worksheet.) PEANUT COMPANY AND SUBSIDIARY Consolidated Financial Statement Worksheet January 1, 20x9 Consolidation Entries Peanut Co. Snoopy Co. DR CR Consolidated Income Statement Sales Less: COGS Less: Depreciation expense Less: Selling & Administrative Expense Income from Snoopy Co. Consolidated net income NCI in net income Controlling Interest in Net Income Statement of Retained Earnings Beginning balance 0 0 0 0 0 0 $ 0 s 0 S 0 S 0 $ 0 Net Income $ 0 $ 0 0 S 0 S 0 Less: Dividends declared Ending Balance Balance Sheet Assets Cash Accounts receivable Inventory Investment in Snoopy Co. Land s 0 s 0 S 0 S 0 $ Buildings and equipment Accumulated depreciation Total Assets Liabilities & Stockholders' Equity Accounts payable Bonds payable Common stock Retained earnings NCI in NA of Snoopy Co. Total Liabilities & Stockholders' Equity s 0 s 0 S S $