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Hi can you please help me get to this answer On January 1, 2017, Corgan Company acquired 70 percent ofthe outstanding voting stock of Smashing,

Hi can you please help me get to this answer

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On January 1, 2017, Corgan Company acquired 70 percent ofthe outstanding voting stock of Smashing, Inc., for a total of $1,295,000 in cash and other consideration. At the acquisition date, Smashing had common stock of $880,000, retained earnings of $430,000, and a noncontrolling interest fair value of $555,000. Corgan attributed the excess of fair value over Smashing's book value to various covenants with a 20-year remaining life. Corgan uses the equity method to account for its investment in Smashing. During the next two years, Smashing reported the following: Inventory Dividends Purchases Net Income Declared from Corgan 2017 $330,000 $53,000 $280,000 2018 310,000 63,000 300.000 Corgan sells inventory to Smashing using a 60 percent markup on cost. At the end of 2017 and 2018, 50 percent of the current year purchases remain in Smashing's inventory. a. Compute the equity method balance in Corgan's Investment in Smashing, lnc., account as of December 31, 2018. b. Prepare the worksheet adjustments for the December 31, 2018, consolidation of Corgan and Smashing. Complete this question by entering your answers in the tabs below. Required A Required B % Compute the equity method balance in Corgan's Investment in Smashing, Inc., account as of December 31, 2018. Required A Required B Prepare the worksheet adjustments for the December 31, 2018, consolidation of Corgan and Smashing. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list transaction list 6) 0 Prepare entry *6 I. 9 Prepare entry 5 I. 9 Prepare entry A I. 0 Prepare entry I I. 9 Prepare entry D i 6 Prepare entry E I. 0 Prepare entry TI f a Prpnarp Pnfrv r

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