Proud Company acquired 80 percent of Scarlet Company's outstanding common stock for $56,000 on January 1, 2021, when the book value of Scarlet's net assets was equals to $70,000. Proud uses equity method for investments. Adjusted trial balance data for Proud and Scarlet as of December 31, 2021, are as follows: Proud Company Scarlet Company DR CR CR Cash Accounts Receivable $25,000 $8,500 16,675 6,000 Inventory 19,000 12,000 Investment in Scarlet 63,200 Land 25,000 27,450 Buildings and equipment 170,500 58,000 Cost of Goods Sold 33,500 15,500 Depreciation Expense 4,325 3,500 Selling and Administrative Expense 28,000 17,500 Dividends Declared 8,000 4,000 Accumulated Depreciation $56,500 $16,600 Accounts Payable 30,600 6,350 Bonds Payable 65,000 10,000 Common Stock 62,500 50,000 Retained Earnings 85,000 20,000 Sales 83,200 49,500 Income from Scarlet 10,400 Total $393,200 $393,200 $152,450 $152,450