Priya Corporation acquired 100 percent of Sheldon Company stock on January 1, 2019 for $649,000 cash. Following are pre-closing trial balance amounts for Priya Corporation and Sheldon Company as of December 31, 2019: PRIYA Debit CORPORATION Credit CORPORATION Credit SHELDON Debit $211,800 141,600 162,000 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 (01/01/2019) Sales Income from Sheldon Corp. $804,600 294,000 473,000 753,600 636,000 790,000 531,000 382,000 63,600 53,100 193,400 60,000 346,000 225,000 247,000 176,000 16,800 31,200 115,400 40,000 $190,800 318,600 178,000 500,000 600,000 1,482,700 809,000 810,600 144,600 $5,034,300 $117,600 187,200 165,800 109,200 210,000 175,000 264,000 484,000 $5,034,300 $1,712,800 $1,712,800 a. Prepare the Investment Analysis for Priya Company's Investment in Sheldon account AT JANUARY 1, 2019 (3 POINTS) $ Fair Value of Consideration given from Priya Company to Sheldon's Shareholders: Fair Value of Any Noncontrolling Interest $ Total Fair Value Book Value of Sheldon Company's Net identifiable Assets Differential (if any) Identifiable Excess (if any) $ New Goodwill (if any) b. Recreate the JOURNAL ENTRIES recorded by Priya to account for its investment in Sheldon Company at January 1, 2019 and during 2019. (8 POINTS) c. Using your information from b. above, calculate the 12/31/19 balances for Priya Company's Investment in Sheldon and Income from Sheldon accounts. Use the T accounts provided below. (4 POINTS) Priya Company's General Ledger Investment in Sheldon Income from Sheldon d. Prepare the necessary CONSOLIDATION WORKSHEET ENTRY (or ENTRIES if you choose to prepare the optional accumulated depreciation entry) at December 31, 2019. (9 POINTS) e. Prepare the consolidation worksheet for the period ended December 31, 2019. You may use either the template provided below or on the next page. (16 POINTS) PRIYA CORPORATION Consolidation Worksheet For the Period Ending December 31, 2019 PRIYA'S SHELDON'S G/L G/L CONSOLIDATION ENTRIES Debit Credit Consolidated Totals Accounts Income Statement Sales Less: Cost of Goods Sold Less: Depreciation Expense, Building Less: Depreciation Expense, Equipment Less: Selling & Administrative Expense Income from Sheldon Corp. Net Income $ 810,600 $ (382,000) $ (63,600) $ (53,100) $ (193,400) $ 144,600 $ 263,100 $ $ $ $ $ 484,000 (176,000 (16,800) (31,200) (115,400) $ 144,600 Statement of Retained Famings Retained Eamings (01/01/2019) Net income (above) Dividends Declared Retained earnings, 12/31/19 $ 809,000 $ 263,100 $ (60,000) $ 1,012,100 $ $ $ $ 264,000 144,600 (40,000) 368,600 $ $ $ 211,800 141,600 162,000 Balance Sheet Cash Accounts Receivable Inventory Investment in Sheldon Corp. Buildings Land Equipment Accumulated Depreciation, Bldg Accumulated Depreciation, Equip Total Assets $ 804,600 $ 294,000 $ 473,000 $ 753,600 $ 636,000 $ 790,000 $ 531,000 $ (190,800) $ (318,600) $ 3,772,800 $ 346,000 $ 225,000 $ 247,000 $ (117,600 $ (187,200) $ 1,028,600 Accounts Payable $ 178,000 Bonds Payable $ 500,000 Common Stock ($1 par) $ 600,000 Additional Paid In Capital $ 1,482,700 Retained earings, 12/31/19 (above) $ 1,012,100 Total Liabilities & Stockholders' Equity $3,772,800 $ 165,800 $ 109,200 $ 210,000 $ 175,000 $ 368,600 $ 1,028,600 NET ASSETS ASSETS - LIABILITIES TOTAL STOCKHOLDERS' EQUITY