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On January 1, 2016, Monica Company acquired 70 percent of Young Company's outstanding common stock for $700,000 The fair value of the noncontrolling interest at the acquisition date was $300,000. Young reported stockholders' equity accounts on that date as follows: Common stockSIO par value lee , zaa Additional paid-in capital lee , eaa Retained earnings 520, eaa In establishing the acquisition value, Monica appraised Young's assets and ascertained that the accounting records undervalued a building (with a five-year remaining life) by $40,000. Any remaining excess acquisition-date fair value was allocated to a franchise agreement to be amortized over 10 years. During the subsequent years, Young sold Monica inventory at a 30 percent gross profit rate. Monica consistently resold this merchandise in the year of acquisition or in the period immediately following. Transfers for the three years after this business combination was created amounted to the following: Year 2016 2017 2018 Transfer Price $ 60,eaa 80, eaa 90, zaa Inventory Remaining at Year-End (at transfer price) $ 21, eaa 23, eaa 29, zaa In addition, Monica sold Young several pieces of fully depreciated equipment on January 1, 2017, for $47,000. The equipment had originally cost Monica S72,OOO_ Young plans to depreciate these assets over a 5-year period. In 2018, Young earns a net income of $250,000 and declares and pays S80,OOO in cash dividends. These figures increase the subsidiary's Retained Earnings to a S850,OOO balance at the end of 2018. Monica employs the equity method of accounting. Hence, it reports $160,740 investment income for 2018 with an Investment account balance of S82g,510_ Under these circumstances, prepare the worksheet entries required for the consolidation of Monica Company and Young Company. (If no entry is required for a transection/event, select "No Journal Entry Required" in the first account field.) 2 2 Retained earnings, 1/1/18 (Young) Cost of goods sold Investment in Young Equipment Accumulated depreciation 6,900 e 6,900 e 37,600 25,000 62,600