On January $1,2023,$ Gomez Company acquired $90$ percent of Martin Company$$s outstanding stock for $$817,920.$ The $10$ percent noncontrolling interest had an assessed fair value of $$90,880$ on that date. Martin's acquisition$-$date book value consisted of $$316,000$ common stock and $$456,000$ retained earnings. Any acquisition$-$date excess fair value over book value was attributed to an unrecorded licensing agreement owned by Martin with an estimated remaining life of $12$ years. Gomez uses the equity method to account for its investment in Martin.

Also on January $1,2023,$ Martin acquired an $80$ percent interest in Short Company for $$364,800.$ At the acquisition date, the $20$ percent noncontrolling interest fair value was $$91,200.$ Short's acquisition$-$date book value consisted of $$208,000$ common stock and $$188,000$ retained earnings. Any excess fair value was attributed to a fully amortized copyright that had a remaining life of $5$ years. Martin uses the equity method to account for its investment in Short. Reported separate net income $($before inclusion of equity method income$)$ totals for $2023$ follow:

Martin Company $ $188,600$

Short Company $132,800$

The following are the $2024$ financial statements for these three companies $($credit balances indicated by parentheses$).$ Short has transferred inventory to Martin since the takeover amounting to $$86,000(2023)$ and $$96,000(2024).$ These transactions include the same markup applicable to Short$$s outside sales. In each year, Martin 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.

Accounts Gomez Company Martin Company Short Company

Sales $ $(1,188,000)$ $ $(672,000)$ $ $(660,000)$

Cost of goods sold $633,600358,400330,000$

Operating expenses $132,016162,200198,000$

Equity income of Martin $(211,680)00$

Equity income of Short $0(95,200)0$

Net income $ $(634,064)$ $ $(246,600)$ $ $(132,000)$

Retained earnings, $1/1/24$ $ $(1,035,064)$ $ $(747,480)$ $ $(380,000)$

Net income $($above$)(634,064)(246,600)(132,000)$

Dividends declared $136,00000$

Retained earnings, $12/31/24$ $ $(1,533,128)$ $ $(994,080)$ $ $(512,000)$

Cash and receivables $ $124,000$ $ $123,480$ $ $104,000$

Inventory $110,000218,000208,000$

Investment in Martin Company $1,269,8640$

Investment in Short Company $0549,7600$

Land, buildings, and equipment $($net$)814,632794,240664,000$

Total assets $ $2,396,864$ $ $1,685,480$ $ $976,000$

Liabilities $ $(331,736)$ $ $(375,400)$ $ $(232,000)$

Common stock $(532,000)(316,000)(232,000)$

Retained earnings, $12/31/24(1,533,128)(994,080)(512,000)$

Total liabilities and equities $ $(2,396,864)$ $ $(1,685,480)$ $ $(976,000)$

Required:

a$1.$ Prepare schedules that show the calculations of the Investment in Short $12/31/24$ account balances.

a$2.$ Prepare schedules that show the calculations of the Investment in Martin $12/31/24$ account balances.

b$.$ Prepare the business combination$$s $2024$ consolidation worksheet; ignore income tax effects.

c$.$ Determine the amount of income tax for Gomez and Martin on a consolidated tax return for $2024.$

d$.$ Determine the amount of Short$$s income tax on a separate tax return for $2024.$

e$.$ Based on the answers to requirements $($c$)$ and $($d$),$ what journal entry does this combination make to record $2024$ income tax?