On January $1,2020,$ Travers Company acquired $90$ percent of Yarrow Company's outstanding stock for $$720,000.$ The $10$ percent noncontrolling interest had an assessed fair value of $$80,000$ on that date. Any acquisition$-$date excess fair value over book value was attributed to an unrecorded customer list developed by Yarrow with a remaining life of $15$ years.

On the same date, Yarrow acquired an $80$ percent interest in Stookey Company for $$344,000.$ At the acquisition date, the $20$ percent noncontrolling interest fair value was $$86,000.$ Any excess fair value was attributed to a fully amortized copyright that had a remaining life of $10$ years. Although both investments are accounted for using the initial value method, neither Yarrow nor Stookey has distributed dividends since the acquisition date. Travers has a policy to declare and pay cash dividends each year equal to $40$ percent of its separate company operating earnings. Reported income totals for $2020$ follow:

Travers Company $ $300,000$

Yarrow Company $160,000$

Stookey Company $120,000$

The following are the $2021$ financial statements for these three companies $($credit balances indicated by parentheses$).$ Stookey has transferred numerous amounts of inventory to Yarrow since the takeover amounting to $$80,000(2020)$ and $$100,000(2021).$ These transactions include the same markup applicable to Stookey$$s outside sales. In each year, Yarrow carried $20$ percent of this inventory into the succeeding year before disposing of it$.$ An effective tax rate of $21$ percent is applicable to all companies. All dividend declarations are paid in the same period.

Travers

Company Yarrow

Company Stookey

Company

Sales $ $(900,000)$ $ $(600,000)$ $ $(500,000)$

Cost of goods sold $480,000320,000260,000$

Operating expenses $100,00080,000140,000$

Net income $ $(320,000)$ $ $(200,000)$ $ $(100,000)$

Retained earnings, $1/1/21$ $ $(700,000)$ $ $(600,000)$ $ $(300,000)$

Net income $($above$)(320,000)(200,000)(100,000)$

Dividends declared $128,00000$

Retained earnings, $12/31/21$ $ $(892,000)$ $ $(800,000)$ $ $(400,000)$

Current assets $ $444,000$ $ $380,000$ $ $280,000$

Investment in Yarrow Company $720,00000$

Investment in Stookey Company $0344,0000$

Land, buildings, and equipment $($net$)949,000836,000520,000$

Total assets $ $2,113,000$ $ $1,560,000$ $ $800,000$

Liabilities $ $(721,000)$ $ $(460,000)$ $ $(200,000)$

Common stock $(500,000)(300,000)(200,000)$

Retained earnings, $12/31/21(892,000)(800,000)(400,000)$

Total liabilities and equities $ $(2,113,000)$ $ $(1,560,000)$ $ $(800,000)$

Prepare the business combination's $2021$ consolidation worksheet; ignore income tax effects.

Determine the amount of income tax for Travers and Yarrow on a consolidated tax return for $2021.$

Determine the amount of Stookey's income tax on a separate tax return for $2021.$

Based on the answers to requirements $($b$)$ and $($c$),$ what journal entry does this combination make to record $2021$ income tax?