Priya Corporation acquired 100 percent of Sheldon Company stock on January 1, 2020 for $979,000 cash. Following are pre-closing trial balance amounts for Priya Corporation and Sheldon Company as of December 31, 2020 $ SHELDON COMPANY Debit Credit 262,700 149,000 195,000 Cash $ Accounts Receivable Inventory Investment in Sheldon Corp. Buildings Land Equipment Cost of Goods Sold Depreciation Expense, Building Depreciation Expense, Equipmen Selling & Administrative Expense Dividends Declared Accumulated Depreciation, Bldg Accumulated Depreciation, Equip Accounts Payable Bonds Payable Common Stock ($1 par) Additional Paid In Capital Retained Earnings (01/01/2020) Sales Income from Sheldon Corp. $ PRIYA CORPORATION Debit Credit 554,600 249,000 437,000 1,050,300 652,000 709,000 513,000 328,000 56,800 43,100 137,000 70,000 $ 227,200 172,400 187,000 450,000 695,000 1,258,500 908,000 790,400 111,300 4,799,800 $ 4,799,800 169,000 283,000 232,000 207,000 19,200 23,400 116,800 40,000 57,600 93,600 174,900 78,400 273,000 348,000 159,000 512,600 $ 1,697,100 $ 1,697,100 Additional Information: 1. On January 1, 2020 the fair market value of Sheldon's assets equaled their book value with the exception of: Inventory - was undervalued by $10,000 (all this inventory was sold during 2020). Building - was undervalued by $85,000 (remaining useful life was estimated to be 10 years). Land - was by overvalued $24,000. Equipment - was overvalued by $28,000 (remaining useful life was estimated to be 4 years). The new Goodwill from the acquisition was impaired by $23,400 at year-end. 2. Priya Corporation uses the (full) equity method to account for its Investment in Sheldon Company. 3. The general ledger numbers given above (HINT: those in boldface) include the effects of the JOURNAL ENTRIES that were recorded by Priya at the acquisition date and during 2020 to account for its investment in Sheldon Company. These boldface figures should be used a check figures in your solution. e. Prepare the consolidation worksheet for the period ended December 31, 2020. You may use the template provided below OR the template on the next page. PRIYA CORPORATION Consolidation Worksheet For the Period Ending December 31, 2020 PRIYA'S G/L SHELDON'S G/L CONSOLIDATION ENTRIES Debit Credit Consolidated Totals Accounts $ 790,400 Income Statement Sales Less: Cost of Goods Sold Less: Depreciation Expense, Building Less: Depreciation Expense, Equipment Less: Selling & Administrative Expense Less: Goodwill Impairment Loss Income from Sheldon Corp. Net Income $ $ $ $ (328,000 156,800) (43,100 (137,000 $ $ $ $ 312,600 207,000) (19,200) (23,400 (116,800 $ $ 111,300 336,800 $ $ 146,200 Statement of Retained Earnings Retained Earnings (01/01/2020 Net income above) Dividends Declared Retained earnings, 12/31/20 $ $ $ $ 900,000 336,800 (70.000 1,174,800 $ $ $ $ 139,000 146,200 40,000) 269,200 $ Balance Sheet Cash Accounts Receivable Inventory Investment in Sheldon Corp. $ $ $ 334,600 249,000 437,000 1,050,300 $ $ 262,700 149,000 195,000 $ Buildings Land Equipment Accumulated Depreciation, Bid Accumulated Depreciation. Equip Goodwill(NEW Total Assets $ $ $ $ $ 632.000 709,000 513,000 (227,200 (172,400 $ $ $ $ $ 169,000 283,000 232,000 37,500 93,500 $ 3,765,300 $ 1.139500 $ $ Accounts Payable Bonds Payable Common Stock (51 par Additional Paid in Capital Retained earings, 12/31/20 (above Total Liabilities & Stockholders' Equity $ $ $ $ $ $ 187,000 450,000 695,000 1,238,500 1,174,800 3.765.300 174,900 78,400 273,000 348,000 269,200 1.139.300 ve $ $ $ 1.192.700 $ 1.192.700 NET ASSETS ASSETS-LABILITIES TOTAL STOCKHOLDERS' EQUITY