On January $1,2023,$ Corgan Company acquired $70$ percent of the outstanding voting stock of Smashing, Incorporated, for a total of $$840,000$ in cash and other consideration. At the acquisition date, Smashing had common stock of $$750,000,$ retained earnings of $$300,000,$ and a noncontrolling interest fair value of $$360,000.$ 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:

Items Net Income Dividends Declared Inventory Purchases from Corgan

$2023$ $ $200,000$ $ $40,000$ $ $150,000$

$2024180,00050,000170,000$

Corgan sells inventory to Smashing using a $60$ percent markup on cost$.$ At the end of $2023$ and $2024,40$ percent of the current year purchases remain in Smashing's inventory.

Required:

Compute the equity method balance in Corgan's Investment in Smashing, Incorporated, account as of December $31,2024.$

Prepare the worksheet adjustments for the December $31,2024,$ consolidation of Corgan and Smashing.