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:

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

Note: Parentheses indicate a credit balance.

Required:

a$.$ 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.

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

Complete this question by entering your answers in the tabs below.

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.

Note: Amounts to be deducted should be indicated with a minus sign.

Then Prepare a Worksheet based on this: Prepare a consolidated worksheet to determine appropriate balances for external financial reporting as of December $31,2024.$

Note: For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Input all amounts as positive values.

Show less A

Accounts

Sales

Cost of goods sold

Operating expenses

Equity in earnings of Sheridan Separate company net income

Consolidated net income

To noncontrolling interest

To Pulaski, Incorporated

Retained earnings $1/1/24$

Net income

Dividends declared

Retained earnings $12/31/24$

Cash and receivables

Inventory

Investment in Sheridan

Buildings $($net$)$

Equipment $($net$)$

Patents $($net$)$

Unpatented technology

Trade name

Total assets

Liabilities

Common stock

Noncontrolling interest $1/1/24$

Noncontrolling interest $12/31/24$

Retained earnings $12/31/24$

Total liabilities and equities

PULASKI, INCORPORATED, AND SHERIDAN, INCORPORATED

Consolidation Worksheet

For Year Ending December $31,2024$

Consolidation Entries

Pulaski

$(741,000)$

$487\mathrm{.}000$

$199\mathrm{.}020$

$(35,308)$

$(90,288)$

Sheridan

Debit

Credit

$(377\mathrm{.}000)$

$230,200$

$78\mathrm{.}400$

$(68,400)|$

Noncontrolling

Interest

Consolidated

Totals

$

$(792,000)$

$(90\mathrm{.}288)$

$49\mathrm{.}100$

$(833\mathrm{.}188)$

$283\mathrm{.}600$

$266,400$

$429,006$

$347\mathrm{.}000$

$247,700$

$

$(283\mathrm{.}800)$

$(68,400)$

$19,600$

$(332\mathrm{.}600)$

$151,400$

$132\mathrm{.}000$

$206\mathrm{.}500$

$90,100$

$24\mathrm{.}800$

s

$1,573,706$

$(440\mathrm{.}518)|$

$(300\mathrm{.}000)|$

$604\mathrm{.}800|$

$(172\mathrm{.}200)|$

$(100\mathrm{.}000)|$

$(833,188)$

$(1,573,706)$

$(332\mathrm{.}600)$

$(604\mathrm{.}800)$