On January 1, 2013, Monica Company acquired 70 percent of Young Companys outstanding common stock for $686,000. The fair value of the noncontrolling interest at the acquisition date was $294,000. Young reported stockholders equity accounts on that date as follows: Common stock$10 par value $ 300,000 Additional paid-in capital 80,000 Retained earnings 500,000 In establishing the acquisition value, Monica appraised Youngs assets and ascertained that the accounting records undervalued a building (with a five-year life) by $80,000. Any remaining excess acquisition-date fair value was allocated to a franchise agreement to be amortized over 10 years. During the subsequent years, Young sold Monica inventory at a 40 percent gross profit rate. Monica consistently resold this merchandise in the year of acquisition or in the period immediately following. Transfers for the three years after this business combination was created amounted to the following: Year Transfer Price Inventory Remaining at Year-End (at transfer price) 2013 $ 40,000 $ 19,000 2014 60,000 21,000 2015 70,000 27,000 In addition, Monica sold Young several pieces of fully depreciated equipment on January 1, 2014, for $45,000. The equipment had originally cost Monica $68,000. Young plans to depreciate these assets over a 6-year period. In 2015, Young earns a net income of $230,000 and distributes $70,000 in cash dividends. These figures increase the subsidiarys Retained Earnings to a $830,000 balance at the end of 2015. Monica employs the equity method of accounting. Hence, it reports $154,220 investment income for 2015 with an Investment account balance of $904,340. Under these circumstances, prepare the worksheet entries required for the consolidation of Monica Company and Young Company. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)