On January $1,20$X$1,$ Pesto Corporation purchased $90$ percent of Sauce Corporation's common stock at underlying book value. At that date, the fair value of the noncontrolling interest was equal to $10$ percent of Sauce Corporation's book value. Pesto uses the equity method in accounting for its investment in Sauce. The stockholders' equity section of Sauce at January $1,20$X$5,$ contained the following balances:

Common Stock $($$$5$ par$)$ $ $400,000$

Additional Paid$-$in Capital $200,000$

Retained Earnings $790,000$

Accumulated Other Comprehensive Income $10,000$

Total $ $1,400,000$

During $20$X$4,$ Sauce sold goods costing $$30,000$ to Pesto for $$45,000,$ and Pesto resold $60$ percent of them prior to year$-$end. It sold the remainder in $20$X$5.$ Also in $20$X$4,$ Pesto sold inventory items costing $$90,000$ to Sauce for $$108,000.$ Sauce resold $$60,000$ of its purchases in $20$X$4$ and the remaining $$48,000$ in $20$X$5.$

In $20$X$5,$ Pesto sold additional inventory costing $$30,000$ to Sauce for $$36,000,$ and Sauce resold $$24,000$ of it prior to year$-$end. Sauce sold inventory costing $$60,000$ to Pesto in $20$X$5$ for $$90,000,$ and Pesto resold $$48,000$ of its purchase by December $31,20$X$5.$

Pesto reported $20$X$5$ income of $$240,000$ from its separate operations and paid dividends of $$150,000.$ Sauce reported $20$X$5$ net income of $$90,000$ and comprehensive income of $$110,000.$ Sauce reported other comprehensive income of $$10,000$ in $20$X$4.$ In both years, other comprehensive income arose from an increase in the market value of items designated as a cash flow hedge. Sauce paid dividends of $$60,000$ in $20$X$5.$

Required:

Compute the balance in the investment account reported by Pesto at December $31,20$X$5.$

Compute the amount of investment income reported by Pesto on its investment in Sauce for $20$X$5.$

Compute the amount of income assigned to noncontrolling shareholders in the $20$X$5$ consolidated income statement.

Compute the balance assigned to noncontrolling shareholders in the consolidated balance sheet prepared at December $31,20$X$5.$

Pesto and Sauce report inventory balances of $$120,000$ and $$100,000,$ respectively, at December $31,20$X$5.$ What amount should be reported as inventory in the consolidated balance sheet at December $31,20$X$5?$

Compute the amount reported as consolidated net income for $20$X$5.$

Prepare the consolidation entries needed to complete a consolidation worksheet as of December $31,20$X$5.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

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