PROBLEM 6-11- Downstream Workpaper-Partial Equity Method LO 6 Pruitt Corporation owns 90% of the common stock of Sedbrook Company. The stock was purchased for $540,000 on January 1, 2017, when Sedbrook Company's retained earnings were $100,000. Preclosing trial balances for the two companies at December 31, 2021, are presented here: Pruitt Corporation Sedbrook Company Cash $ 83,000 $ 80,000 Accounts Receivable (net). 213,000 112,500 Inventory 1/1 150,000 110,000 Investment in Sedbrook Co. 578,250 Other Assets 500,000 400,000 Dividends Declared 100,000 30,000 Purchases 850,000 350,000 Other Expenses 180,000 137,500 Accounts Payable Other Liabilities Common Stock Retained Earnings Sales Equity in Subsidiary Income Ending Inventory $2,654,250 $ 70,000 75,000 800,000 $1,220,000 $ 30.000 40,000 500,000 562,000 120,000 1,100,000 530,000 47,250 $2,654,250 $ 200,000 $1,220,000 $ 120,000