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Following are selected account balances from Peregrine Company and Sprano Corporation as of December 31,...

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Accounting

Following are selected account balances from Peregrine Company and Sprano Corporation as of December 31, 2021:

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On January 1, 2021, Peregrine acquired all of Spranos outstanding stock for $680,000 fair value in cash and common stock. At the date of acquisition, copyrights (with a 6-year remaining life) were undervalued by $120,000 (i.e., market value was higher than book value). Peregrine applies the equity method to maintain the Investment in Sprano account.

Prepare a consolidation worksheet that includes consolidation (elimination) entries and consolidation totals as of December 31, 2021

Sprano $ (400,000) 100,000 200,000 Revenues Cost of goods sold Depreciation expense Equity Income in Sprano Retained earnings, 1/1/21 Dividends declared Current assets Copyrights Royalty agreements Investment in Sprano Liabilities Common Stock ($20 par) Additional paid-in capital Peregrine $ (700,000) 250,000 150,000 ??? (600,000) 80,000 400,000 900,000 600,000 ??? (950,000) (600,000) (150,000) (200,000) 60,000 500,000 400,000 1,000,000 (1,380,000) (200,000) (80,000)

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