Pruitt Corporation owns 90% of the common stock of Sedbrook Compary. The stock was purchased for $544,770 on January 1,2012 , when Sedbrook Company's retained earnings were $100,100. Preclosing trial balances for the two companies at December 31 , 2016, are presented here: The January 1, 2016, inventory of Sedbrook Company includes $30,000 of profit recorded by Pruitt Corporation on 2015 sales. During 2016, Pruitt Corporation made intercompany sales of $200,700 with a markup of 25% on cost. The ending imventory of Sedbrook Company indudes goods purchased in 2016 from Pruitt for $49,500. Pruitt Corporation uses the complete equity method to record its investment in Sedbrook Company. Prepare the consolidated statements workpaper for the year ended December 31, 2016. (List items that increase retained earnings first.)