Question 1 (10 points) Saved Priya Corporation acquired 100 percent of Sheldon Company stock on January 1, 2021 for $1,160,600 cash. Following are pre-closing trial balance amounts for Priya Corporation and Sheldon Company as of December 31, 2021: SHELDON COMPANY PRIYA CORPORATION Debit Credit Debit Credit Cash Accounts Receivable Inventory Investment in Sheldon Corp. Buildings Land Equipment Cost of Goods Sold $ 540,800 $ 304,700 294,000 197,000 473,000 210,000 1,373,400 625,000 292,500 807,000 291,000 315,000 345,000 342,000 211,000 Depreciation Expense, Building Depreciation Expense, Equipment Selling & Administrative Expense Dividends Declared Accumulated Depreciation, Bldg Accumulated Depreciation, Equip 58,600 18,600 41,300 24,700 159,000 119,600 80,000 50,000 $ 243,400 $ 74,400 156,200 98,800 Accounts Payable 178,000 174,500 Bonds Payable 515,000 108,400 Common Stock ($1 par) 659,000 290,000 Additional Paid In Capital 1,525,800 375,000 Retained Earnings (01/01/2021) 788,500 265,000 Sales 780,400 678,000 Income from Sheldon Corp. 262,800 $ 5,109,100 $ 5,109,100 $ 2,064,100 $ 2,064,100 Additional Information: 1. On January 1, 2021 the fair market value of Sheldon's assets equaled their book value with the exception of: Inventory - was overvalued by $5,400 (all this inventory was sold during 2021). Building - was undervalued by $94,000 (remaining useful life was estimated to be 4 years). Land - was by undervalued $47,000. Equipment - was overvalued by $42,000 (remaining useful life was estimated to be 10 years). The new Goodwill from the acquisition was impaired by $27,400 at year-end. 2. Priya Corporation uses the (full) equity method to account for its Investment in Sheldon Company. REQUIRED: a. Prepare the Investment Analysis for Priya Company's Investment in Sheldon account AT JANUARY 1, 2021 (10 POINTS) NOTE: BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF $1,000. IF THE ANSWER IS A NEGATIVE NUMBER, TYPE -1000 INSTEAD OF ($1,000).