Problem 2-22 (Static) Consolidated Worksheet at End of the Second Year of Ownership (Equity Method) LO 2-3, 2-5, 2-6 Peanut Company acquired 100 percent of Snoopy Company's outstanding common stock for $300,000 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $300,000. Accumulated depreciation on this date was $10,000. 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: Peanut Company Snoopy Company Debit Credit Debit Credit Cash Accounts Receivable Inventory Investment in Snoopy Company Land Buildings and Equipment $ 230,000 $ 75,000 190,000 180,000 80,000 100,000 405,000 0 200,000 100,000 700,000 200,000 Cost of Goods Sold 270,000 150,000 Depreciation Expense 50,000 10,000 Selling and Administrative Expense 230,000 60,000 Dividends Declared 225,000 30,000 Accumulated Depreciation Accounts Payable $ 500,000 75,000 $ 30,000 35,000 Bonds Payable 150,000 85,000 Common Stock 500,000 200,000 Retained Earnings 525,000 155,000 Sales 850,000 300,000 Income from Snoopy Company 80,000 0 Total $ 2,680,000 $ 2,680,000 $ 805,000 $ 805,000 (Assume the company prepares the optional Accumulated Depreciation Elimination Entry.) Required: a. Prepare any equity method journal entry(ies) related to the investment in Snoopy Company during 20X9. b. Prepare a consolidation worksheet for 20X9.