On January $1,2023,$ Pulaski, Incorporated, acquired a $60$ percent interest in the common stock of Sheridan, Incorporated, for $$392,400.$ Sheridan's book value on that date consisted of common stock of $$100,000$ and retained earnings of $$231,900.$ Also, the acquisition$-$date fair value of the $40$ percent noncontrolling interest was $$261,600.$ The subsidiary held patents $($with a $10-$year remaining life$)$ that were undervalued within the company's accounting records by $$81,700$ and also had unpatented technology $(15-$year estimated remaining life$)$ undervalued by $$57,000.$ Any remaining excess acquisition$-$date fair value was assigned to an indefinite$-$lived trade name. Since acquisition, Pulaski has applied the equity method to its Investment in Sheridan account. At year$-$end, there are no intra$-$entity payables or receivables.

Intra$-$entity inventory sales between the two companies have been made as follows:

Year Cost to Pulaski Transfer Price to Sheridan Ending Balance $($at transfer price$)$

$2023$ $ $130,800$ $ $163,500$ $ $54,500$

$2024113,400151,20037,800$

The individual financial statements for these two companies as of December $31,2024,$ and the year then ended follow:

Items Pulaski, Incorporated Sheridan, Incorporated

Sales $ $(741,000)$ $ $(377,000)$

Cost of goods sold $487,000230,200$

Operating expenses $199,02078,400$

Equity in earnings in Sheridan $(35,308)0$

Net income $ $(90,288)$ $ $(68,400)$

Retained earnings, $1/1/24$ $ $(792,000)$ $ $(283,800)$

Net income $(90,288)(68,400)$

Dividends declared $49,10019,600$

Retained earnings, $12/31/24$ $ $(833,188)$ $ $(332,600)$

Cash and receivables $ $283,600$ $ $151,400$

Inventory $266,400132,000$

Investment in Sheridan $429,0060$

Buildings $($net$)347,000206,500$

Equipment $($net$)247,70090,100$

Patents $($net$)024,800$

Total assets $ $1,573,706$ $ $604,800$

Liabilities $ $(440,518)$ $ $(172,200)$

Common stock $(300,000)(100,000)$

Retained earnings, $12/31/24(833,188)(332,600)$

Total liabilities and equities $ $(1,573,706)$ $ $(604,800)$

Note: Parentheses indicate a credit balance.

Required:

Show how Pulaski determined the $$429,006$ Investment in Sheridan account balance. Assume that Pulaski defers $100$ percent of downstream intra$-$entity profits against its share of Sheridan$$s income.

Prepare a consolidated worksheet to determine appropriate balances for external financial reporting as of December $31,2024.$