Priya Corporation acquired 100 percent of Sheldon Company stock on January 1, 2020 for $954,000 cash. Following are pre-closing trial balance amounts for Priya Corporation and Sheldon Company as of December 31, 2020: $ $ SHELDON COMPANY Debit Credit 226,700 194,000 159,000 Cash Accounts Receivable Inventory Investment in Sheldon Corp. Buildings Land Equipment Cost of Goods Sold Depreciation Expense, Building Depreciation Expense, Equipment 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 549,600 294,000 473,000 991,700 625,000 790,000 531,000 382,000 62,500 53,100 173,000 80,000 $ 187,500 318,600 178,000 500,000 650,000 1,528,200 809,000 740,900 92,700 5,004,900 $ 5,004,900 196,000 238,000 223,000 219,000 12,900 32,400 118,600 55,000 $ 38,700 129,600 174,900 78,400 238,000 317,000 195,000 503,000 $ $ 1,674,600 $ 1,674,600 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 overvalued by $9,000 (all this inventory was sold during 2020). Building - was overvalued by $36,000 (remaining useful life was estimated to be 18 years). Land was by undervalued $57,000. Equipment - was undervalued by $78,000 (remaining useful life was estimated to be 5 years). The new Goodwill from the acquisition was impaired by $22,800 at year-end. 2. Priya Corporation uses the (full) equity method to account for its Investment in Sheldon Company. REQUIRED: FOR THE CONSOLIDATION WORKSHEET ITEMS MARKED IN GRAY, ANSWER THE FOLLOWING QUESTIONS. NOTE: BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF $1,000. IF THE AMOUNT IS DISPLAYED ON THE WORKSHEET IN PARENTHESES, TYPE THE AMOUNT AS A NEGATIVE NUMBER. FOR EXAMPLE, FOR ($1,000) TYPE IN -1000. 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 $ 1,243,900 Income Statement Sales Less: Cost of Goods Sold Less: Depreciation Expense, Building Less: Depreciation Expense, Equipment Less: Selling & Administrative Expense Goodwill Impairment Loss Income from Sheldon Corp. Net Income $ $ $ $ $ 740,900 (382,000) (62,500) (53,100) (173,000) $ $ $ $ $ 503,000 (219,000) (12,900) (32,400) (118,600) $ (291,600) Less: 92,700 $ $ 163,000 $ 120,100 Statement of Retained Earnings Retained Earnings (01/01/2020) Net income (above) Dividends Declared Retained earnings, 12/31/20 $ $ $ $ 809,000 163,000 (80,000) 892,000 $ $ $ $ 195,000 120,100 (55,000) 260,100 Balance Sheet Cash Accounts Receivable $ $ $ $ $ $ 549,600 294,000 473,000 991,700 226,700 194,000 159,000 $ $ $ 776,300 488,000 632,000 $ Inventory Investment in Sheldon Corp. Buildings Land Equipment Accumulated Depreciation, Bldg Accumulated Depreciation, Equip Goodwill (NEW) Total Assets $ $ $ $ $ 625,000 790,000 531,000 (187,500) (318,600) $ $ $ $ $ 196,000 238,000 223,000 (38,700) (129,600) $ 3,748,200 $ 1,068,400 $ $ 352,900 578,400 Accounts Payable $ Bonds Payable $ Common Stock ($1 par) Additional Paid In Capital $ Retained earnings, 12/31/20 (above) $ Total Liabilities & Stockholders' Equity $ 178,000 500,000 650,000 1,528,200 892,000 3,748,200 $ $ $ S $ $ 174,900 78,400 238,000 317,000 260,100 1,068,400 $ 1,136,700 $ 1,136,700 NET ASSETS ASSETS - LIABILITIES TOTAL STOCKHOLDERS' EQUITY THE COMPLETED CONSOLIDATION WORKSHEET INCLUDES: A CREDIT TO COST OF GOODS SOLD IN THE AMOUNT OF: AJ A CREDIT TO DEPRECIATION EXPENSE, BUILDING IN THE AMOUNT OF: A A DEBIT TO DEPRECIATION EXPENSE, EQUIPMENT IN THE AMOUNT OF: A DEBIT TO GOODWILL IMPAIRMENT LOSS IN THE AMOUNT OF: A A DEBIT TO INCOME FROM SHELDON IN THE AMOUNT OF: A CREDIT TO INCOME FROM SHELDON IN THE AMOUNT OF: A A DEBIT TO RETAINED EARNINGS, 01/01/2020 IN THE AMOUNT OF: A CREDIT TO DIVIDENDS IN THE AMOUNT OF: A CREDIT TO INVESTMENT IN SHELDON (THE BOOK VALUE PORTION ONLY) IN THE AMOUNT OF: A A CREDIT TO INVESTMENT IN SHELDON (THE EXCESS VALUE PORTION ONLY) IN THE AMOUNT OF: A CREDIT TO BUILDING IN THE AMOUNT OF: AJ A DEBIT TO LAND IN THE AMOUNT OF: A DEBIT TO EQUIPMENT IN THE AMOUNT OF: A DEBIT TO ACCUMULATED DEPRECIATION, BUILDING IN THE AMOUNT OF: A CREDIT TO ACCUMULATED DEPRECIATION, EQUIPMENT IN THE AMOUNT OF: A DEBIT TO NEW GOODWILL IN THE AMOUNT OF: A A DEBIT TO COMMON STOCK ($1 PAR) IN THE AMOUNT OF: A A DEBIT TO ADDITIONAL PAID IN CAPITAL IN THE AMOUNT OF: CONSOLIDATED COST OF GOODS SOLD SHOULD BE REPORTED IN THE AMOUNT OF (INPUT THIS AS A NEGATIVE NUMBER): CONSOLIDATED DEPRECIATION EXPENSE, BUILDING SHOULD BE REPORTED IN THE AMOUNT OF (INPUT THIS AS A NEGATIVE NUMBER): CONSOLIDATED DEPRECIATION EXPENSE, EQUIPMENT SHOULD BE REPORTED IN THE AMOUNT OF (INPUT THIS AS A NEGATIVE NUMBER): CONSOLIDATED GOODWILL IMPAIRMENT LOSS SHOULD BE REPORTED IN THE AMOUNT OF (INPUT THIS AS A NEGATIVE NUMBER): CONSOLIDATED INCOME FROM SHELDON SHOULD BE REPORTED IN THE AMOUNT OF: CONSOLIDATED NET INCOME ON THE INCOME STATEMENT SHOULD BE REPORTED IN THE AMOUNT OF: A CONSOLIDATED RETAINED EARNINGS, (01/01/2020) SHOULD BE REPORTED IN THE AMOUNT OF: A CONSOLIDATED NET INCOME IN THE STATEMENT OF RETAINED EARNINGS SHOULD BE REPORTED IN THE AMOUNT OF: CONSOLIDATED DIVIDENDS IN THE STATEMENT OF RETAINED EARNINGS SHOULD BE REPORTED IN THE AMOUNT OF (INPUT THIS AS A NEGATIVE NUMBER): CONSOLIDATED RETAINED EARNINGS, (12/31/20) IN THE STATEMENT OF RETAINED EARNINGS SHOULD BE REPORTED IN THE AMOUNT OF: CONSOLIDATED INVESTMENT IN SHELDON CORP SHOULD BE REPORTED IN THE AMOUNT OF: CONSOLIDATED BUILDINGS SHOULD BE REPORTED IN THE AMOUNT OF: CONSOLIDATED LAND SHOULD BE REPORTED IN THE AMOUNT OF: CONSOLIDATED EQUIPMENT SHOULD BE REPORTED IN THE AMOUNT OF: CONSOLIDATED ACCUMULATED DEPRECIATION, BUILDING SHOULD BE REPORTED IN THE AMOUNT OF (INPUT THIS AS A NEGATIVE NUMBER): CONSOLIDATED ACCUMULATED DEPRECIATION, EQUIPMENT SHOULD BE REPORTED IN THE AMOUNT OF (INPUT THIS AS A NEGATIVE NUMBER): CONSOLIDATED GOODWILL (NEW) SHOULD BE REPORTED IN THE AMOUNT OF: A CONSOLIDATED TOTAL ASSETS SHOULD BE REPORTED IN THE AMOUNT OF: A CONSOLIDATED COMMON STOCK ($1 PAR) SHOULD BE REPORTED IN THE AMOUNT OF: CONSOLIDATED ADDITIONAL PAID IN CAPITAL SHOULD BE REPORTED IN THE AMOUNT OF: CONSOLIDATED RETAINED EARNINGS, (12/31/20) AS PRESENTED IN THE BALANCE SHEET SHOULD BE REPORTED IN THE AMOUNT OF: A/ CONSOLIDATED TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY SHOULD BE REPORTED IN THE AMOUNT OF