On January 1, 2013, Monica Company acquired 70 percent of Young Companys outstanding common stock for $658,000 The fair value of the noncontrolling interest at the acquisition date was $282,000 Young reported stockholders equity accounts on that date as follows Common stock$10 par value $ 300,000 Additional paid in capital 40,000 Retained earnings 460,000 In establishing the acquisition value, Monica appraised Youngs assets and ascertained that the accounting records undervalued a building (with a five year life) by $40,000 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 30 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 $ 70,000 $ 15,000 2014 90,000 17,000 2015 100,000 23,000 In addition, Monica sold Young several pieces of fully depreciated equipment on January 1, 2014, for $41,000 The equipment had originally cost Monica $60,000 Young plans to depreciate these assets over a 5 year period In 2015, Young earns a net income of $190,000 and distributes $50,000 in cash dividends These figures increase the subsidiarys Retained Earnings to a $790,000 balance at the end of 2015 During this same year, Monica reported dividend income of $35,000 and an investment account containing the initial value balance of $658,000 No changes in Youngs common stock accounts have occurred since Monicas acquisition Monica employs the equity method of accounting Hence, it reports $127,340 investment income for 2015 with an Investment account balance of $833,770 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 )

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On January 1, 2013, Monica Company acquired 70 percent of Young Companys outstanding common stock for $658,000. The fair value of the noncontrolling interest at

On January 1, 2013, Monica Company acquired 70 percent of Young Companys outstanding common stock for $658,000. The fair value of the noncontrolling interest at the acquisition date was $282,000. Young reported stockholders equity accounts on that date as follows:


Common stock$10 par value	$	300,000
Additional paid-in capital		40,000
Retained earnings		460,000

In establishing the acquisition value, Monica appraised Youngs assets and ascertained that the accounting records undervalued a building (with a five-year life) by $40,000. 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 30 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	$	70,000	$	15,000
2014		90,000		17,000
2015		100,000		23,000

In addition, Monica sold Young several pieces of fully depreciated equipment on January 1, 2014, for $41,000. The equipment had originally cost Monica $60,000. Young plans to depreciate these assets over a 5-year period.

In 2015, Young earns a net income of $190,000 and distributes $50,000 in cash dividends. These figures increase the subsidiarys Retained Earnings to a $790,000 balance at the end of 2015.

During this same year, Monica reported dividend income of $35,000 and an investment account containing the initial value balance of $658,000. No changes in Youngs common stock accounts have occurred since Monicas acquisition.

Monica employs the equity method of accounting. Hence, it reports $127,340 investment income for 2015 with an Investment account balance of $833,770. 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.)