The following balance sheets have been prepared as at December 31, 2021 for Sterling Corp. and Silver Co. Ltd. Cash Accounts Receivable Inventory Sterling $ 68,000 Silver $ 30,000 80,000 170,000 600,000 400,000 Property and plant (net) Investments in Silver Current liabilities Bonds payable Common Shares Retained earnings 1,400,000 352,000 $2.500.000 $ 400,000 500,000 900,000 $1.500.000 $ 150,000 600,000 900,000 450,000 700.000 $2,500,000 300,000 $1,500,000 Additional information: 1) 2) 3) Sterling acquired its 40% interest in Silver for $352,000 in 2016, when Silver's retained earnings were $170,000 and common shares were $450,000. The acquisition differential on that date was fully amortized by the end of 2021. In 2020, Sterling sold land to Silver and recorded a gain of $75,000 on the transaction. The land is still being used by Silver. The December 31, 2021, inventory for Sterling contained a profit recorded by Silver amounting to $25,000. On December 31, 2021, Silver owes Sterling $45,000. 4) 5) Sterling has used the cost method to account for its investment in Silver. 6) Both companies have a 40% income tax rate. REQUIRED: Prepare selected consolidated balance sheet amounts for Sterling as at December 31, 2021, in accordance with GAAP, assuming that the investment in Silver is a joint venture investment and is reported using proportionate consolidation. (proportionately adjusted financial statements) b) Calculate acquisition differential at acquisition date (2 marks) c) Summarize Intercompany Eliminations and Gains/Losses (2.5 marks) 1) Accounts Receivable (1.5 marks) 2) Property and Plant (net) (1.5 marks) 3) Inventory (1.5 marks) 4) Common Shares (1 mark)