The Peregrine Corporation acquired 80 percent of the 100,000 outstanding voting shares of Sprano, Inc., for $7.20 per share on January 1, 2020. The remaining 20 percent of Sprano's shares traded actively at $4.76 per share before and after Peregrine's acquisition. An appraisal made on that date determined that all book values appropriately reflected the fair values of Sprano's underlying accounts except that a building with a 5-year future life was undervalued (i.e., book value is lower than fair value) by $85,500 and a fully amortized trademark (i.e., zero book value) with an estimated 10-year remaining life had a $64,000 fair value. At the acquisition date, Sprano reported common stock of $100,000 and a retained earnings balance of $226,500.

Following are the separate financial statements for the year ending December 31, 2021:

Credit balances are in parentheses. At year-end, there were no intra-entity receivables or payables.

Given the information provided, determine all entries made to Investment in Sprano in Peregrines book during 2021. Show the t-account, the beginning Investment balance on January 1, 2021, all entries posted during 2021, and the ending balance on December 31, 2021. (Hint: Work backwards from the Investment balance on 12.31.21 to obtain the Investment balance on 1.1.21.)

Peregrine Corporation $ (641,000) 198,000 273,000 (58,800) $ (228,800) (799,200) (228,800) 70,000 $ (958,000) 121,000 656,000 887,000 149,000 $ 1,813,000 (535,000) (320,000) (958,000) $ (1,813,000) Sales Cost of goods sold Operating expenses Equity income Net income Retained earnings, 1/1 Net income (above) Dividends declared Retained earnings, 12/31 Current assets Investment in Sprano Buildings and equipment (net) Trademarks Total assets Liabilities Common stock Retained earnings, 12/31 (above) Total liabilities and equities Sprano Inc. $ (399,000) 176,000 126,000 -0- $ (97,000) (296,500) (97,000) 20,000 $ (373,500) 120,500 -0- 335,000 236,000 $ 691,500 (218,000) (100,000) (373,500) $ (691,500) $