In January 1, 2019, Strolle Company acquired an 70% interest in Hailey Company for a purchase price that was $500,000 over the book value of Haileys Stockholders Equity on the acquisition date. Spring uses the equity method to account for its investment in Hailey. Strolle assigned the acquisition-date AAP as follows: AAP Items Initial Fair Value Useful Life (years) Patent 350,000 10 Goodwill 150,000 Indefinite $500,000 Hailey sells inventory to Strolle (upstream) which includes that inventory in products that it (Strolle), ultimately, sells to customers outside of the controlled group. You have compiled the following data as of 2024 and 2025: 2024 2025 Transfer price for inventory sale $305,500 $500,000 Cost of goods sold -259,675 -440,000 Gross profit $45,825 60,000 % inventory remaining 50% 40% Gross profit deferred $22,913 $24,000 EOY Receivable/Payable $42,000 $18,000 The inventory not remaining at the end of the year has been sold outside of the controlled group. Strolle and Hailey report the following financial statements at December 31, 2025: Income Statement Strolle Hailey Sales $4,500,000 $750,000 Cost of goods sold -3,825,000 (660,000) Gross Profit 675,000 90,000 Income (loss) from subsidiary 13,939 Operating expenses -323,000 -34,000 Net income $365,939 $56,000 Statement of Retained Earnings Strolle Hailey BOY Retained Earnings $4,465,000 $440,000 Net income 365,939 56,000 Dividends -105,400 -10,000 EOY Retained Earnings $4,725,539 $486,000 Balance Sheet Strolle Hailey Assets: Cash $420,000 $425,000 Accounts receivable 304,000 545,000 Inventory 654,000 425,000 Equity Investment 782,600 PPE, net 6,723,539 420,000 $8,884,139 $1,815,000 Liabilities and Stockholders Equity: Current Liabilities $340,000 $175,000 Long-term Liabilities 1,750,000 753,000 Common Stock 853,600 92,100 APIC 1,215,000 308,900 Retained Earnings 4,725,539 486,000 $8,884,139 $1,815,000 Required: a. Compute the EOY noncontrolling interest equity balance. b. Prepare the consolidation spreadsheet as of December 31, 2025: