On January $1,2022,$ Monica Company acquired $70$ percent of Young Company$$s outstanding common stock for $$756,000.$ The fair value of the noncontrolling interest at the acquisition date was $$324,000.$

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

Common stock$$$$10$ par value $ $300,000$

Additional paid$-$in capital $40,000$

Retained earnings $600,000$

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 $$60,000.$ 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 $20$ 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:

Year Transfer Price Inventory Remaining at Year$-$End $($at transfer price$)$

$2022$ $ $70,000$ $ $29,000$

$202390,00031,000$

$2024100,00037,000$

In addition, Monica sold Young several pieces of fully depreciated equipment on January $1,2023,$ for $$55,000.$ The equipment had originally cost Monica $$88,000.$ Young plans to depreciate these assets over a $5-$year period.

In $2024,$ Young earns a net income of $$170,000$ and declares and pays $$50,000$ in cash dividends. These figures increase the subsidiary's Retained Earnings to a $$930,000$ balance at the end of $2024.$ No changes in Young$$s common stock accounts have occurred since Monica$$s acquisition.

Required:

Monica employs the equity method of accounting. Hence, it reports $$115,160$ investment income for $2024$ with an Investment account balance of $$906,820.$ Prepare the worksheet entries required for the consolidation of Monica Company and Young Company.On January $1,2022,$ Monica Company acquired $70$ percent of Young Company's outstanding common stock for $$756,000.$

The falr value of the noncontrolling interest at the acquisition date was $$324,000.$

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

Common stock$-$$$10$ par value $$3,o+$

Additional paid$-in$ capital $4,o+$

Retained earnings $6,o+$

In establishing the acquisition value, Monica appralsed Young's assets and ascertalned that the accounting records

undervalued a building $($with a five$-$year remaining life$)$ by $$60,000.$ Any remaining excess acqulsition$-$date falr value was

allocated to a franchise agreement to be amortized over $10$ years.

During the subsequent years, Young sold Monica Inventory at a $20$ percent gross profit rate. Monica consistently resold this

merchandise in the year of acquisition or in the perlod Immedlately following. Transfers for the three years after this

business combination was created amounted to the following:

In addition, Monica sold Young several pleces of fully depreclated equipment on January $1,2023,$ for $$55,000.$ The

equipment had originally cost Monica $$88,000.$ Young plans to depreclate these assets over a $5-$year period.

In $2024,$ Young earns a net Income of $$170,000$ and declares and pays $$50,000$ in cash dividends. These figures Increase

the subsidlary's Retained Earnings to a $$930,000$ balance at the end of $2024.$ No changes in Young's common stock

accounts have occurred since Monica's acquisition.

Required:

Monica employs the equity method of accounting. Hence, it reports $$115,160$ investment Income for $2024$ with an

Investment account balance of $$906,820.$ Prepare the worksheet entrles required for the consolidation of Monica

Company and Young Company.

Note: If no entry Is required for a transaction$/$event$,$ select $"$No Journal Entry Requlred" In the first account fleld.