On January $1,2023,$ Corgan Company acquired $70$ percent of the outstanding voting stock of Smashing, Incorporated, for a total of $$1,540,000$ in cash and other consideration. At the acquisition date, Smashing had common stock of $$950,000,$ retained earnings of $$500,000,$ and a noncontrolling interest fair value of $$660,000.$ 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

$2023$ $ $400,000$ $ $60,000$ $ $350,000$

$2024380,00070,000370,000$

Corgan sells inventory to Smashing using a $60$ percent markup on cost$.$ At the end of $2023$ and $2024,30$ 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.