PROBLEM 6-16 Complete Equity with Downstream Sales LO 6 (Note: This is the same problem as Problem 6-11, but assuming the use of the complete equity method.) 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 Accounts Receivable (net). 213,000 Inventory 1/1 150,000 $ 80,000 112,500 110,000 Investment in Sedbrook Co. 568,250 Other Assets 500,000 400,000 Dividends Declared 100,000 30,000 Purchases 850,000 350,000 Other Expenses 180.000 137.500 $2,644,250 Accounts Payable $ 70,000 Other Liabilities 75,000 $1,220,000 $ 30,000 40,000 Common Stock 800,000 500,000 Retained Earnings, 1/1 532,000 120,000 Sales 1,100,000 530,000 Equity in Subsidiary Income 67.250 $2,644,250 $1,220,000 Ending Inventory $200,000 $120,000 The January 1, 2021, inventory of Sedbrook Company includes $30,000 of profit recorded by Pruitt Corporation on 2020 sales. During 2021, Pruitt Corporation made intercompany sales of $200,000 with a markup of 25% on cost. The ending inventory of Sedbrook Company includes goods purchased in 2021 from Pruitt for $50,000. Pruitt Corporation uses the complete equity method to record its investment in Sedbrook Company. Required: A. Prepare the consolidated statements workpaper for the year ended December 31, 2021. B. Calculate consolidated retained earnings on December 31, 2021, using the analytical or t-account approach. C. If you completed Problem 6:11, compare the consolidated balances obtained in requirement A with those obtained in that problem.