On January 1, 2016, Monica Company acquired 70 percent of Young Company's 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 Additional paid-in capital Retained earnings $ 300,000 40,000 460,000 In establishing the acquisition value, Monica appraised Young's assets and ascertained that the accounting records undervalued a building (with a five-year remaining 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: Inventory Remaining at Year-End (at transfer price) $ 15,000 17,000 23,000 Transfer Price $ 70,000 90,000 100,000 Year 2016 2017 2018 In addition, Monica sold Young several pieces of fully depreciated equipment on January 1, 2017, for $41,000. The equipment had originally cost Monica $60,000. Young plans to depreciate these assets over a five-year period. In 2018, Young earns a net income of $190,000 and declares and pays $50,000 in cash dividends. These figures increase the subsidiary's Retained Earnings to a $790,000 balance at the end of 2018. 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 Young's common stock accounts have occurred since Monica's acquisition. a. Prepare the 2018 consolidation worksheet entries for Monica and Young. b. Compute the net income attributable to the noncontrolling interest for 2018. 1 Prepare Entry *G to recognize upstream intra-entity inventory gross profit deferred from the previous year. Prepare Entry *TA to return the equipment accounts to beginning book value based on historical cost and to remove the intra-entity gain from beginning retained earnings. 3 Prepare Entry *C to adjust the parent retained earnings for the subsidiary's increase in book value. 4 Prepare Entry S to eliminate the stockholders' equity accounts of the subsidiary and recognize the noncontrolling interest. 5 Prepare Entry A to recognize the amount paid within acquisition price for buildings and the franchise agreement. Req 6 Prepare Entry I to eliminate the intra-entity dividend declarations recorded by the parent as income under the initial value method. 7 Prepare Entry E to recognize current year excess amortization expense. 8 Prepare Entry TI to remove the intra-entity inventory transfers made during the current year. 9 Prepare Entry G to defer the intra-entity gross profit on the 2018 intra-entity inventory transfers. 10 Prepare Entry ED to remove the current year depreciation on the transferred item since its historical cost has been fully depreciated. Required A Required B Compute the net income attributable to the noncontrolling interest for 2018. Net income attributable to noncontrolling interest