Please answer part 2: question D, E, F

Please answer part 2

Perkins Company owns 85% of Sheraton Company. Perkins purchased 85,000 shares of Sheraton for 1,700,000 in 1/1/2017, when Sheraton's equity is capital stock 1,500,000 and retained earnings of 500,000. Sheraton's retained earnings grew to $700,000 at the end of 2018. In 2019, Sheraton Company starts to sell merchandise to Perkins Company at 20% above cost. During 2019 and 2020, such sales amounted to $450,000 and $486,000, respectively. At the end of each year, Sheraton Company had in its inventory one-third of the amount of goods purchased from Perkins during that year. Also, Perkins Co Sheraton Co Net income Dividend Net income Dividend 2019 2,500,000 500,000 300,000 100,000 2020 3,000,000 600,000 450,000 200,000 a. Assuming that Perkins Co uses cost method, 2019 2020 Consolidated NI Page 1 of 3 ACCT416 2021 HW6 2019 2020 NCI inc Net income attributable to P b. Assuming that Perkins Co uses partial equity method, 2019 2020 Consolidated NI NCI income Net income attributable to P C. Assuming that Perkins Co uses complete equity method, 2019 2020 Consolidated NI NCI income Net income attributable to P Setup for d, e and f. Perkins uses complete equity method. 2020 Perkins Co Sheraton Co Debit Credit NCI Consolidated Income statement Sales $10,100,000 $1,450,000 380,800 O Equity income (losses) O Total revenue 1,450,000 10,480,800 800,000 100,000 7,000,000 800,000 Inv, BB (COS) , Purchase (COS) Inv, EB (COS) Cost of goods sold 700,000 O O 900,000 7,100,000 280.800 100.000 other expenses Total cost and expense 7-480.800 1.000.000 Net/Consolidated income 3,000,000 450,000 Noncontrolling interest Net income 3,000,000 450,000 Page 2 of 3 ACCT416 2021 HW6 2,500,000 900,000 Retained Earnings 1/1 Retained earnings Net income Dividends declared 450,000 3,000,000 (600,000) (200,000) 4,900,000 1,150,000 12/31 Retained earnings Balance sheets Cash 865,000 1,564,450 460,000 Accounts receivable 290,000 Inventory 240,000 205,000 Investment in Sheraton Company 2,314,550 Land O 1,000,000 22360,000 1,200,000 3,560,000 6,939,000 312,000 175,000 Equipment (net) Diff Goodwill Total assets Accounts payable Notes payable Capital stock Retained earnings Noncontrolling int 1/1 Noncontrolling int 12/31 Total liabilities and equity 727,000 735,000 1,000,000 1,500,000 4.900,000 1.150.000 6,939,000 3,560,000 d. Derive the equity income (380,800) e. Derive the investment in Sheraton Co (2,314,550) f. Prepare a consolidated financial statements workpaper for the year ended December 31, 2020