Peanut Company acquired 80 percent of Snoopy Company's outstanding common stock for $280,000 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $350,000. 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 $ 270,000 202,000 195,000 306,600 209,000 703,000 350,000 40,000 220,000 220,000 $ 490,000 60,000 141,000 496,000 605,600 842,000 81,000 $2,715,600 $2,715,600 Snoopy Company Debit Credit $ 92,000 97,000 106,000 0 81,000 188,000 150,000 11,000 45,750 42,000 $ 33,000 33,000 114,750 188,000 136,000 308,000 0 $812,750 $812,750 Required: a. Prepare any equity method journal entry(ies) related to the investment in Snoopy Company during 20X9. (If no entry is required for a transactionlevent, select "No journal entry required" in the first account field.). 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 Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit 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 Co. Snoopy Co. DR CR Consolidated Income Statement Sales $ Less: COGS 800,000 $ (200,000) (50,000) (225,000) 67,500 392,500 250,000 (125,000) (10,000) (40,000) Less: Depreciation expense Less: Selling & Administrative Expense Income from Snoopy Co. Consolidated net income NCI in net income $ 1,050,000 (325,000) (60,000) (265,000) 0 75,000 67,500 67,500 7,500 0 400,000 (7,500) $ 392,500 $ 75,000 $ 75,000 $ 0 $ 392,500 Controlling Interest in Net Income Statement of Retained Earnings Beginning balance $ 225,000 $ 100,000 $ 100,000 $ 225,000 Net Income 392,500 75,000 75,000 392,500 Less: Dividends declared (100,000) (100,000) 517,500 (20,000) 155,000 20,000 20,000 $ $ $ 175,000 $ $ 517,500 Ending Balance Balance Sheet Assets Cash $ $ Accounts receivable 80,000 65,000 75,000 238,000 230,000 275,000 Inventory 319,500 0 Investment in Snoopy Co. Land $ 158,000 165,000 200,000 319,500 200,000 700,000 (450,000) $ 1,292,500 100,000 200,000 10,000 300,000 890,000 (460,000) $ 1,473,000 10,000 (20,000) 500,000 $ $ 10,000 $ 329,500 $ $ 60,000 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 75,000 200,000 500,000 517,500 85,000 200,000 200,000 175,000 $ 135,000 285,000 500,000 517,500 35,500 $ 1,473,000 155,000 20,000 35,500 55,500 $ 1,292,500 $ 500,000 $ 375,000 $