Question 3 (20 points) Saved Priya Corporation acquired 100 percent of Sheldon Company stock on January 1, 2020 for $780,000 cash. Following are pre-closing trial balance amounts for Priya Corporation and Sheldon Company as of December 31, 2020: PRIYA CORPORATION SHELDON CORPORATION Debit Credit Debit Credit Cash $753,600 $262,700 Accounts Receivable 249,000 149,000 Inventory 437,000 195,000 Investment in Sheldon Corp. 886,200 Buildings 652,000 169,000 Land 709,000 283,000 Equipment 513,000 232,000 Cost of Goods Sold 328,000 207,000 Depreciation Expense, Building 56,800 19,200 Depreciation Expense, Equipment 43,100 23,400 Selling & Administrative Expense 137,000 116,800 Dividends Declared 70,000 40,000 Accumulated Depreciation, Bldg $227,200 $57,600 Accumulated Depreciation, Equip 172,400 93,600 Accounts Payable 187,000 174,900 Bonds Payable 450,000 78,400 Common Stock ($1 par) 695,000 273,000 Additional Paid In Capital 1,258,500 348,000 Retained Earnings (01/01/2020) 908,000 159,000 Sales 790,400 512,600 Income from Sheldon Corp. 146,200 $4,834,700 $4,834,700 $1,697,100 $1,697,100 Additional Information: 1. On January 1, 2020, the book values of Sheldon's net assets and liabilities approximated fair values. 2. Priya Corporation uses the equity method to account for its Investment in Sheldon Company. REQUIRED: ANSWER THE FOLLOWING QUESTIONS REGARDING THE BASIC CONSOLIDATION ENTRY. THE ENTRY WOULD INCLUDE: NOTE: BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF $1,000. A DEBIT TO COMMON STOCK (S) IN THE AMOUNT OF: A DEBIT TO ADDITIONAL PAID IN CAPITAL (S) IN THE AMOUNT OF A DEBIT TO RETAINED EARNINGS, 01/01/20 (S) IN THE AMOUNT OF: A A DEBIT TO INCOME FROM SHELDON CORP. (P) IN THE AMOUNT OF: A CREDIT TO DIVIDENDS DECLARED (S) IN THE AMOUNT OF: A A CREDIT TO INVESTMENT IN SHELDON CORP. (P) IN THE AMOUNT OF A