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: