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On January 1, 2018, Sledge had common stock of $330,000 and retained earnings of $470,000. During that year, Sledge reported sales of $340,000, cost of goods sold of $175,000, and operating expenses of $61,000. On January 1, 2016, Percy, Inc., acquired 90 percent of Sledge's outstanding voting stock. At that date, $81,000 of the acquisition-date fair value was assigned to unrecorded contracts (with a 20-year life) and $41,000 to an undervalued building (with a 10-year remaining life). In 2017, Sledge sold inventory costing $25,200 to Percy for $36,000. Of this merchandise, Percy continued to hold $5,000 a year-end. During 2018, Sledge transferred inventory costing $24,600 to Percy for $41,000. Percy still held half of these items at year-end. On January 1, 2017, Percy sold equipment to Sledge for $22,500. This asset originally cost $37,000 but had a January 1, 2017 book value of $13,200. At the time of transfer, the equipment's remaining life was estimated to be five years. Percy has properly applied the equity method to the investment in Sledge. a. Prepare worksheet entries to consolidate these two companies as of December 31, 2018. b. Compute the net income attributable to the noncontrolling interest for 2018. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Prepare worksheet entries to consolidate these two companies as of December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) No Transaction Accounts Debit Credit Kindle 1 Retained earninne 3 1 500 Required A Required B Prepare worksheet entries to consolidate these two companies as of December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Debit Credit Accounts No Transaction 1,500 1 1 Retained earnings Cost of goods sold 1,500 > 2 2 Equipment Investment in Sledge Accumulated depreciation 14,500 7,440 . 21,940 3 3 330,000 468,500 Common stock Retained eamings Investment in Sledge Noncontrolling interest in Sledge Oolo 718,650 79,850 4 72,900 32,800 Contracts Buildings Investment in Sledge Noncontrolling interest in Sledge OO 95,130 10,570 5 5 82,410 Equity in income of Sledge Investment in Sledge 83,760 6 6 Depreciation expense Amortization expense Contracts 4,100 4,050 4,050 Prev 1 of 18 !!! Next > 72,900 32,800 4 Contracts Buildings Investment in Sledge Noncontrolling interest in Sledge >>>> 95,130 10,570 82,410 5 Equity in income of Sledge Investment in Sledge 83,760 6 4,100 4,050 Depreciation expense Amortization expense Contracts Buildings 000 4,050 4,100 > 41,000 Sales Cost of goods sold 41,000 Cost of goods sold Inventory IS 1,860 Accumulated depreciation Depreciation expense 1,860 (with a 10-year remaining life). In 2017, Sledge sold inventory costing $25,200 to Percy for $36,000. Of this merchandise, Percy continued to hold $5,000 at year-end. During 2018, Sledge transferred inventory costing $24,600 to Percy for $41,000. Percy still held half of these items at year-end. On January 1, 2017, Percy sold equipment to Sledge for $22,500. This asset originally cost $37,000 but had a January 1, 2017, book value of $13,200. At the time of transfer, the equipment's remaining life was estimated to be five years. Percy has properly applied the equity method to the investment in Sledge. a. Prepare worksheet entries to consolidate these two companies as of December 31, 2018. b. Compute the net income attributable to the noncontrolling interest for 2018. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Compute the net income attributable to the noncontrolling interest for 2018. Net income attributable to noncontrolling interest $ 17.250 Required A ProForm acquired 70 percent of ClipRite on June 30, 2017, for $1,400,000 in cash. Based on ClipRite's acquisition-date fair value, an unrecorded intangible of $450,000 was recognized and is being amortized at the rate of $16,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $600,000 at the acquisition date. The 2018 financial statements are as follows: ClipRite $ (820,000) 455,000 155,000 $ Sales Cost of goods sold Operating expenses Dividend income Net income Retained earnings, 1/1/18 Net incone Dividends declared Retained earnings, 12/31/18 Cash and receivables Inventory Investment in ClipRite Fixed assets Accumulated depreciation Totals Liabilities Conmon stock Retained earnings, 12/31/18 Totals ProForm $ (910,000) 590,000 210,000 (63,000) (173,000) $(2,000,000) (173,000) 210,000 $(1,963,600) 510,000 400,000 1,400,000 1,000,000 (200,000) $ 3,110,000 $ (647,000) (500, 900) (1,963,000) $(3,110,000) $ $ (210,080) $ (960,880) (210,000) 90,000 $(1,080,000) $ 410,000 810,000 1,150,000 (300,000) $ 2,070,000 $ (490,000) (500,000) (1,080,000) $(2,070,000) ProForm sold ClipRite inventory costing $80,000 during the last six months of 2017 for $200,000. At year-end, 30 percent remained. ProForm sells ClipRite inventory costing $255,000 during 2018 for $360,000. At year-end, 10 percent is left. Determine the consolidated balances for the following accounts: Answer is complete but not entirely correct. Consolidated Balance $ 410,000 810,000 Cash and receivables Inventory Investment in ClipRite Fixed assets Accumulated depreciation Totals Liabilities Common stock Retained earnings, 12/31/18 Totals 510,000 400,000 1,400,000 1,000,000 (200,000) $ 3, 110,000 $ (647,000) (500,000) (1,963,000) $13, 110,000) 1,150,000 (300,000) $ 2,070,000 $ (490,000) (500,000) (1,980,000) $(2,070,000) ProForm sold ClipRite inventory costing $80,000 during the last six months of 2017 for $200,000. At year-end, 30 percer remained. ProForm sells ClipRite inventory costing $255,000 during 2018 for $360,000. At year-end, 10 percent is left. Determine the consolidated balances for the following accounts: Answer is complete but not entirely correct. Consolidated Balance Sales 1,370,000 Cost of goods sold $ 659,500 Operating expenses 381,000 Dividend Income $ Net income attributable to noncontrolling $ interest 58,200 Inventory $ 1,199,500 Noncontrolling interest in subsidiary, 12/31/18 $ 598,650