Baugh Company purchased 100% of the outstanding stock of Wiley, Inc., on January 1, 2022, for a purchase price of $1,200,000. At the acquisition date, Wiley's book value consisted of common stock of $600,000 and retained earnings of $250,000. Baugh attributed the cost over book to a patent with an estimated 20-year remaining useful life. Baugh uses the equity method to account for its investment in Wiley. During the next two years, Wiley reporting the following:

Year	Income	Dividends Declared	Inventory Transfers to Baugh at Transfer Price
2018	$120,000	$42,000	$250,000
2019	135,000	45,000	280,000

Wiley sells inventory to Baugh after a markup based on a gross profit rate. At the end of 2022 and 2023, 40 percent of the current year purchases remain in Wiley's inventory.

Required:

Create an Excel spreadsheet that computes the following: Investment in Wiley, Inc., account as of December 31, 2023. Worksheet adjustments (consolidation journal entries) for the December 31, 2023, consolidation of Baugh and Wiley.