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In: AccountingPinot Noir Company obtains 100% of Sangria Company's stock onJanuary 1, 2016. As of that...Pinot Noir Company obtains 100% of Sangria Company's stock onJanuary 1, 2016. As of that date, Sangria has the following trialbalance: Debit CreditAccountspayable $50,000Accountsreceivable $40,000Additionalpaid-in-capital $50,000Buildings(4-year remaininglife) $120,000Cash and short-terminvestment $60,000Commonstock $250,000Equipment (5 year remaininglife) $200,000Inventory $90,000Land $80,000Long term liabilities (mature12/31/19) $150,000Retained earnings,1/1/16 $100,000Supplies $10,000 Totals $600,000 $600,000During 2016, Sangria reported net income of $80,000 whiledeclaring and paying dividends of $10,000. During 2017, Sangriareported net income of $110,000 while declaring and payingdividends of $30,000Assume that Pinot Noir company acquires Sangria's common stockfor $490,000 in cash. As of January 1,2016, Sangria's land had afair value of $90,000, its building were valued at $200,000, andits equipment was appraised at $180,000. Pinot Noir uses the equitymethod for this investment.Required:Prepare consolidation worksheet entries for December 31,2016 and Dec 31,2017.