On January $1,2020,$ Corgan Company acquired $70$ percent of the outstanding voting stock of Smashing, Inc., for a total of $$910,000$ in cash and other consideration. At the acquisition date, Smashing had common stock of $$770,000,$ retained earnings of $$320,000,$ and a noncontrolling interest fair value of $$390,000.$ 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:

Net Income Dividends Declared Inventory Purchases from Corgan

$2020$ $ $220,000$ $ $42,000$ $ $170,000$

$2021200,00052,000190,000$

Corgan sells inventory to Smashing using a $60$ percent markup on cost$.$ At the end of $2020$ and $2021,30$ percent of the current year purchases remain in Smashing's inventory.

Prepare the worksheet adjustments for the December $31,2021,$ consolidation of Corgan and Smashing. There should be $8.$

$\backslash$table$[[$No$,$Transaction,Accounts,Debit,Credit$],[1,1,$Investment in Smashing,$,x,],[,$Cost of goods sold,$,,$