On January $1,2023,$ Pulaski, Incorporated, acquired a $60$ percent interest in the common stock of Sheridan, Incorporated, for $$325,200.$ Sheridan's book value on that date consisted of common stock of $$100,000$ and retained earnings of $$192,300.$ Also, the acquisition$-$date fair value of the $40$ percent noncontrolling interest was $$216,800.$ The subsidiary held patents $($with a $10-$year remaining life$)$ that were undervalued within the company's accounting records by $$74,200$ and also had unpatented technology $(15-$year estimated remaining life$)$ undervalued by $$50,100.$ 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$)$

$2023$ $ $124,200$ $ $155,250$ $ $51,750$

$2024112,800150,40037,600$

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 $ $(715,000)$ $ $(353,000)$

Cost of goods sold $469,900215,800$

Operating expenses $193,21073,600$

Equity in earnings in Sheridan $(32,654)0$

Net income $ $(84,544)$ $ $(63,600)$

Retained earnings, $1/1/24$ $ $(754,700)$ $ $(281,300)$

Net income $(84,544)(63,600)$

Dividends declared $46,50016,500$

Retained earnings, $12/31/24$ $ $(792,744)$ $ $(328,400)$

Cash and receivables $ $270,200$ $ $149,600$

Inventory $253,800130,400$

Investment in Sheridan $384,5480$

Buildings $($net$)325,000203,600$

Equipment $($net$)232,10087,000$

Patents $($net$)021,700$

Total assets $ $1,465,648$ $ $592,300$

Liabilities $ $(372,904)$ $ $(163,900)$

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

Retained earnings, $12/31/24(792,744)(328,400)$

Total liabilities and equities $ $(1,465,648)$ $ $(592,300)$

Note: Parentheses indicate a credit balance.

Required:

Show how Pulaski determined the $$384,548$ Investment in Sheridan account balance. Assume that Pulaski defers $100$ percent of downstream intra$-$entity profits against its share of Sheridan$$s income.

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