Question 2 (90 points) Pitton Corporation acquired 100 percent of Squash Company on January 1, 2021, for $250,000. Following are selected account balances from Pitton and Squash Corporation as of December 31, 2021: Squash Corp. Debit Credit $85,000 346,000 125,000 Item Cash & Receivables Buildings & Equipment Patents Investment in Squash Cost of Goods Sold Depreciation Expense Other Expenses Dividends Declared Accumulated Depreciation Liabilities Common Stock Retained Earnings Sales Income from Squash Pitton Corp. Debit Credit $125,000 649,000 185,000 265,500 378,000 37,000 135,000 23,000 $185,000 475,000 240,000 266,000 604,000 27,500 $1,797,500 $1,797,500 157,000 22,000 86,000 12,000 $95,000 223,000 80,000 140,000 295,000 $833,000 $833,000 Additional Information: 1. On January 1, 2021 the fair market value of Squash's assets equaled their book value with the exception of Buildings & Equipment (with an estimated economic life of 8 years) which had a fair market value in excess of $20,000 more than book value. 2. Pitton used the equity-method in accounting for its investment in Squash. 3. Detailed analysis of receivables and payables showed that Squash owed Pitton $8,000 on December 31, 2021. Required: a. Give all journal entries recorded by Pitton with regard to its investment in Squash during 2021. (24 points) b. Prepare Book Value calculation table at Dec 31,2021. (6 points) c. Give the basic consolidation entry at Dec 31,2021. (15 points) d. Prepare the excess Value (Differential) Calculations table at Dec 31,2021. (5 points) e. Give amortized excess value reclassification entry at Dec 31,2021. (16 points) f. Give excess value (differential) reclassification entry at Dec 31,2021. (16 points) g. Give accumulated depreciation consolidation entry at Dec 31,2021. (4 points) h. Give the entry to eliminate intercompany accounts at Dec 31,2021 (4 points)