On January $1,2021,$ Sledge had common stock of $$210,000$ and retained earnings of $$350,000.$ During that year, Sledge reported

sales of $$220,000,$ cost of goods sold of $$115,000,$ and operating expenses of $$49,000.$

On January $1,2019,$ Percy, Inc., acquired $80$ percent of Sledge's outstanding voting stock. At that date, $$69,000$ of the acquisition$-$date

fair value was assigned to unrecorded contracts $($with a $20-$year life$)$ and $$29,000$ to an undervalued building $($with a $10-$year remaining

life$).$

In $2020,$ Sledge sold inventory costing $$13,200$ to Percy for $$24,000.$ Of this merchandise, Percy continued to hold $$9,000$ at year$-$

end. During $2021,$ Sledge transferred inventory costing $$15,950$ to Percy for $$29,000.$ Percy still held half of these items at year$-$end.

On January $1,2020,$ Percy sold equipment to Sledge for $$16,500.$ This asset originally cost $$25,000$ but had a January $1,2020,$ book

value of $$10,800.$ At the time of transfer, the equipment's remaining life was estimated to be five years.

Percy has properly applied the equity method to the investment in Sledge.

a$.$ Prepare worksheet entries to consolidate these two companies as of December $31,2021.$

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