On January 1, 2014, Corgan Company acquired 80 percent of the outstanding voting stock of smashing Inc., for a total of $1,080,000 in cash and other consideration. At the acquisition date, Smashing had common stock of $780,000, retained earnings of $330,000, and a noncontrolling interest fair value of $270,000. Corgan attributed the excess of fair value over Smashing's book value to various covenants with a 20-year life. Corgan uses the equity method to account for its investment in Smashing During the next two years, Smashing reported the following Inventory Purchases from Net Income Dividends Corgan $180,000 2014 $230,000 $43,000 200,000 2015 210,000 53,000 Corgan sells inventory to smashing using a 60 percent markup on cost. At the end of 2014 and 2015, 40 percent of the current year purchases remain in S inventory a. Compute the equity method balance in Corgan's Investment in Smashing, Inc., account as of December 31, 2015. Investment balance 12/31/15 b. Prepare the worksheet adjustments for the December 31, 2015, consolidation of Corgan and Smashing. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.)