Question 3 (40 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: Cash Accounts Receivable Inventory Investment in Sheldon Corp. Buildings Land Equipment Cost of Goods Sold Depreciation Expense, Building PRIYA Debit CORPORATION Credit SHELDON Debit $ 540,800 $ 304,700 294,000 197,000 473,000 210,000 COMPANY Credit 1,373,400 625,000 807,000 315,000 292,500 291,000 345,000 342,000 211,000 58,600 18,600 Depreciation Expense, Equipment Selling & Administrative Expense Dividends Declared Accumulated Depreciation, Bldg Accumulated Depreciation, Equip Accounts Payable Bonds Payable Common Stock ($1 par) 41,300 24,700 159,000 119,600 80,000 50,000 $ 243,400 $ 74,400 156,200 98,800 178,000 174,500 515,000 659,000 108,400 290,000 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: (40 POINTS TOTAL) ANSWER THE FOLLOWING QUESTIONS REGARDING THE 3 REQUIRED CONSOLIDATION ENTRIES. NOTE: BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF $1,000.