$"$On January $1,2020,$ Chocolate, Inc. acquired the outstanding voting common stock of Peanut Corp. for $$600,000.$ Of this payment, $$85,000$ was allocated to undervalued equipment $($with a five$-$year life$).$ Any remaining excess was attributable to goodwill. $($Hint: Calculate book value of assets and AAP, which will help determine goodwill$)$

During $2020,$ Chocolate bought inventory for $$44,000$ and sold it to Peanut for $$98,500.60\%$ of these goods were still in the company's possession on December $31.$ The financial statements of the two companies as of December $31,2020$ are presented below."

Prepare the consolidated Balance Sheet and also prepare all consolidation journal entries $($i$.$e$.,$ elimination entries$)$

Chocolate Peanut

Sales revenue $$750,000$ $$440,000$

Cost of goods sold $$(414,975)$ $$(69,000)$

Gross profit $$335,025$ $$371,000$

Operating expenses $$(65,000)$ $$(75,000)$

Income $($loss$)$ from subsidiary $$246,300$ $$-$

Net Income $$516,325$ $$296,000$

Retained Earnings, $1/1/20$ $$670,000$ $$258,000$

Net income $$516,325$ $$296,000$

Dividends $$(15,000)$ $$(12,000)$

Retained Earnings, $12/31/20$ $$1,171,325$ $$542,000$

Cash and receivables $$325,000$ $$90,000$

Inventory $$440,000$ $$126,000$

Equity investment $$834,300$ $$-$

Property, plant & equipment $($Net$)$ $$1,273,025$ $$635,000$

Total Assets $$2,872,325$ $$851,000$

Accounts payable $$652,000$ $$75,000$

Accrued liabilities $$245,000$ $$56,000$

Common stock $$152,000$ $$34,000$

Additional paid$-$in capital $$652,000$ $$144,000$

Retained Earnings, $12/31/20$ $$1,171,325$ $$542,000$

Total Liabilities and Equities $$2,872,325$ $$851,000$