On January $1,2019,$ Monica Company acquired $80$ percent of Young Company's outstanding common stock for $$808,000.$ The fair Required $A$

Prepare the $2021$ consolidation worksheet entries for Monica and Young. $($If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field.$)$

$\backslash$table$[[$No$,$Transaction,Accounts,Debit,Credit$],[1,1,$Retained earnings, $1/1/21($Young$),9,600>,],[,,$Cost of goods sold,,$9,600],[,,,,],[2,2,$Retained earnings, $1/1/21($Monica$),,],[,,$Equipment,$26,000,],[,,$Accumulated depreciation$-$Equipment,,$],[,,,,],[3,3,$Investment in Young,,$],[,,$Retained earnings, $1/1/21($Monica$),,],[,,,,],[4,4,$Common stock $-$ Young,,$],[,,$Additional paid$-$in capital $-$ Young,,$],[,,$Retained earnings, $1/1/21($Young$),,],[,,$Investment in Young,,$],[,,$Noncontrolling interest in Young,,$],[,,,,],[5,5,$Franchise agreement,,$],[,,$Buildings,,$],[,,$Investment in Young,,$],[,,$Noncontrolling interest in Young,,$],[,,,,],[6,6,$Dividend income,,$],[,,$Dividends declared,,$],[,,,,]]$ Required A

Required B Answer is not complete.

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Required B

Compute the net income attributable to the noncontrolling interest for $2021.$

Net income attributable to noncontrolling interest

value of the noncontrolling interest at the acquisition date was $$202,000.$

Young reported stockholders' equity accounts on that date as follows:

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 $$50,000.$ 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 $40$ 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:

In addition, Monica sold Young several pieces of fully depreciated equipment on January $1,2020,$ for $$48,000.$ The equipment had

originally cost Monica $$74,000.$ Young plans to depreciate these assets over a six$-$year period.

In $2021,$ Young earns a net income of $$260,000$ and declares and pays $$85,000$ in cash dividends. These figures increase the

subsidiary's Retained Earnings to a $$860,000$ balance at the end of $2021.$ During this same year, Monica reported dividend income of

$$68,000$ and an investment account containing the initial value balance of $$808,000.$ No changes in Young's common stock accounts

have occurred since Monica's acquisition.

a$.$ Prepare the $2021$ consolidation worksheet entries for Monica and Young.

b$.$ Compute the net income attributable to the noncontrolling interest for $2021.$