On Jan. $1,2022,$ you acquire Co$.$ M for $$31,200,000$ when Co$.$ M$\text{'}$s book value was $$6,040,000.$

M$\text{'}$s book value equals fair value except:

Assets: Inventory is understated by $$380,000$; Equipment remaining life$)$ is

understated by $$12,700,000$; Patents $=10yr$ remaining life$)$ are understated by

$$4,540,000$; a Brand Name $($indefinite life$)$ is understated by $$1,780,000$;

Lease agreements ~$=$ yr remaining life$)$ are understated by $$623,000.$

Any remaining difference between M$\text{'}$s fair value and the fair value of identifiable net assets is

attributed to goodwill. During $2022,$ M reports net income of $$3,780,000$ and pays dividends of

$$402,000.$ During $2023,$ M reports net income of $$3,680,000$ and pays dividends of $$267,000.$

You use the equity method to internally account for your investment in $M$ and the acquisition

method for consolidation.

Below are selected balances for You and Co$.$ M as of Dec. $31,2023(2$ yrs after acquisition$).$

Required $1$: Determine the consolidation balances for these selected accounts at Dec. $31,2023.$

Required $2$: Provide the internal balances for each of the following.

The Investment in Co$.$ M account balance at Dec. $31,2023,$ is

The Equity in Co$.$ M Income account balance at Dec. $31,2023,$ isOn Jan. $1,2022,$ you acquire Co$.$ M for $ $31,200,000$ when Co$.$ M$$s book value was $ $6,040,000.$

M$$s book value equals fair value except:

Assets: Inventory is understated by $ $380,000$; Equipment $(25$ yr remaining life$)$ is

understated by $ $12,700,000$; Patents $(10$ yr remaining life$)$ are understated by

$ $4,540,000$; a Brand Name $($indefinite life$)$ is understated by $ $1,780,000$;

Lease agreements $(2$ yr remaining life$)$ are understated by $ $623,000.$

Any remaining difference between M$$s fair value and the fair value of identifiable net assets is attributed to goodwill. During $2022,$ M reports net income of $ $3,780,000$ and pays dividends of $ $402,000.$ During $2023,$ M reports net income of $ $3,680,000$ and pays dividends of $ $267,000.$ You use the equity method to internally account for your investment in M and the acquisition method for consolidation.

Below are selected balances for You and Co$.$ M as of Dec. $31,2023(2$ yrs after acquisition$).$

Required $1$: Determine the consolidation balances for these selected accounts at Dec. $31,2023.$