On January 1, 2017, Corgan Company acquired 70 percent of the outstanding voting stock of Smashing, Inc., for a total of $840,000 in cash and other consideration. At the acquisition date, Smashing had common stock of $750,000, retained earnings of $300,000, and a noncontrolling interest fair value of $360,000. Corgan attributed the excess of fair value over Smashing's book value to various covenants with a 20-year remaining life. Corgan uses the equity method to account for its investment in Smashing During the next two years, Smashing reported the following Inventory Purchases Net Income Declared from Corgan Dividends 2017 $200,000 2018 180,000 $40,000 50,000 150,000 170,000 Corgan sells inventory to Smashing using a 60 percent markup on cost. At the end of 2017 and 2018, 40 percent of the current year purchases remain in Smashing's inventory a. Compute the equity method balance in Corgan's Investment in Smashing, Inc., account as of December 31, 2018 b. Prepare the worksheet adjustments for the December 31, 2018, consolidation of Corgan and Smashing. Complete this question by entering your answers in the tabs below. Required A Required B Compute the equity method balance in Corgan's Investment in Smashing, Inc., account as of December 31, 2018. t balance 12/31/18 Required B Complete thls question by entering your answers in the tabs below. Required A Required B Prepare the worksheet adjustments for the December 31, 2018, consolidation of Corgan and Smashing. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries Prepare entry Note: Enter debits before credits nsaction Accounts Debit Credit Record entry Clear entry view consolidation entries Required A Required B Prepare the worksheet adjustments for the December 31, 2018, consoidation of Corgan and Smashing.(f no entry is required for a ransaction/event, select "No journal entry required in the first account field.) mashing. (If no entry is required for a view transaction list Consolidation Worksheet Entries 6 Prepare entry S Note Enter debits before credits Transaction Accounts it Credit Record entry Clear entry view consolidation entries Required ARequiredB Prepare the worksheet adjustments for the December 31, 2018, consolidation of Corgan and Smashing. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries 4 Prepare entry A Note: Enter debits before credits Accounts Debit c Credit Record entry Clear entry view consolidation entries Required A Required B Prepare the worksheet adjustments for the December 31, 2018, consolidation of Corgan and Smashing. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries 3 Prepare entry I Note: Enter debits before credits Transaction Accounts Debit Credit Record entry Clear entry view consolidation entries Required A Required B Prepare the worksheet adjustments for the December 31, 2018, consolidation of Corgan and Smashing. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries Prepare entry D Note: Enter debits before credits. Accounts Debit Credit Transaction view consolidation entries Clear entry Record entry Required A Required B Prepare the worksheet adjustments for the December 31, 2018, consolidation of Corgan and Smashing. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries 601 7 Prepare entry E Note: Enter debits before credits. ransaction Accounts Debit Credit Record entry Clear entry view consolidation entries Required A Required B Prepare the woksheet adustments for the Decermber , 2018, consolidation dashing. (If no entry transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries Prepare entry TI Note: Enter debits before credits. Transaction Accounts Debit Credit Record entry Clear entry view consolidation entries Required A Required B Prepare the worksheet adjustments for the December 31, 2018, consolidation of transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries 7 Prepare entry G Note: Enter debits before credits. Transaction Accounts Debit Credit Record entry Clear entry view consolidation entries