Mini Case (6 Points) On December 31, 2022, Cloud Walking Coffee Co. acquired 80% of Violet Sky Chocolate's common stock for $400,000 in cash. The following are the December 31, 2022 separate balance sheets of Cloud Walking Coffee Co. and Violet Sky Chocolate immediately following the acquisition and the December 31, 2023 separate income statements of Cloud Walking Coffee Co. and Violate Sky Chocolate. Additional Information: On December 31, 2022, Violet Sky Chocolate's PP&E, net had a fair value of $650,000. Violet Sky Chocolate's PP&E, net has a remaining useful life of 10 years as of December 31,2022. On December 31, 2022, Violet Sky Chocolate's had a patent with a fair value of $10,000 that is off balance sheet. Violet Sky Chocolate's off-balance sheet patent has a remaining useful life of 5 years as of December 31, 2022. All other of Violet Sky Chocolate's assets and liabilities fair values are equal to the book values. All depreciation expense and amortization expense is included in SG&A expense. During 2023, Cloud Walking had intra-entity sales to Violet Sky, totaling $50,000. Violet Sky sold all of this inventory to an outside entity. Unconselidated Balance Sheets as of 12/31/2022 Cloud Violet Walking Sky Assets Current assels 300,000 200,000 PP&E. net 700,000 600.000 Patent 0 0 Investment in Violet Sky 100.000 0 Total Assels 1,100,000 800,000 Liabilities Current Liabilities 200,000 120000 Long-term Liabilities 300,000 300.000 Total Liabilities 700,000 420,000 Stockholders' Equity Common Stock 100.000 20,000 Additional Paid in Capital 240,000 R0.000 Retamed Farmings 360,000 280.000 Total Stockholders' Equity 700,000 380,000 Total Liabilities and Equity 1.400.000 800.000 Unconsolidated Income Statements as of 12/31/2023 Cloud Violet Walking Sky Sales 240,000 150,000 Cost of Goods Sold (1 10,000) (45,000) Gross Profit 130,000 105,000 SG&A Expense (45,000) (12,000) Tax Expense (17,850) (19,530) Investment Income (equity method) 53,176 Net Income 120,326 73,470 Requirement 1: Prepare the December 31, 2022 consolidated balance sheet under the acquisition method. Requirement 2: Prepare the December 31, 2023 consolidated income statement under the acquisition method. Please show your work. You may either type your work directly in the space below or type your answer below but upload your work in a separate file. Excel files and/or photos of external scratch work are acceptable