3. (20 pts) Using the information from Problem 2 and assuming the beginning of year 3 Investment in J account has a balance of $1,152,000, complete the consolidation worksheet below. To aid in this, the information for Problem 2 is repeated below. Washington Company purchased 100% of Jefferson Company on January 1, 20X1 for $1,000,000 when the book value of Jefferson was $750,000 with the excess caused by Equipment that was undervalued by $50,000 and Goodwill. The Equipment had a four year life. In 20x2 Washington sold inventory to Jefferson still in the inventory of Jefferson at year end with a profit of $3,000. During 20X3, Washington sold to Jefferson inventory costing $30,000 for $40,000. At December 31, 20x3, Jefferson still had $6,000 cost to Jefferson of that inventory in its inventory. The income statements and balance sheets for the two companies for 20X3 are shown below: Washington Jefferson Dr. Cr Sales 300,000 100,000 Cost of Goods Sold 60,000 40,000 240,000 60,000 Expenses 40,000 10,000 Income from S Total income 50,000 Begin. RE 800,000 730,000 Dividends 20,000 End. RE 10,000 770,000 Cash Receivables 100,000 100,000 70,000 100,000 Inventory Propety/Equipment 50,000 50,000 500,000 900,000 Accumulated Depr -100,000 -100,000 Patents 0 50,000 Goodwill Consolidated psLock A Investment in J S 5 L 1,100,000 Liabilities 282,000 130,000 Capital Stock 500,000 200,000 Retained Earnings 770,000 1,100,000 30.000 800/000 D