On January 1, 2017, James Company purchased 100 percent of the outstanding voting stock of Nolan, Inc., for $1,000,000 in cash and other consideration. At the purchase date, Nolan had common stock of $500,000 and retained earnings of $185,000. James attributed the excess of acquistion-date fair value over Nolan's book value to a trade name with an estimated 25-year remaining useful life. James uses the equity method to account for its investment in Nolan. During the next two years, Nolan reported the following: Year 2017 2018 Income $78,000 Dividends Declared $85,000 $25,000 $27,000 Inventory Transfers to James at Transfer Price $190,000 $210,000 Nolan sells inventory to James after a markup based on a gross profit rate. At the end of 2017 and 2018, 30% of the current year purchases remain in James's inventory. The gross margin percent for both years is 60%. Required: 1. (3 pts) Calculate the excess fair value over book value and assign it to the trade name. 2. (2 pts) Determine the amortization of the excess fair value over book value. 3. (8 pts) Determine the gross profit in inventory recognized or deferred in 2017 and 2018. 4. (9 pts) Determine the Equity in Nolan Co Earnings for 2017 and 2018. 5. (8 pts) Determine the Investment Account ending balance for 2017 and 2018. 6. (8 pts) Determine the ending balance in Nolan Retained Earnings for 2017 and 2018. 7. (17 pts) Determine the worksheet adjustment entries for December 31, 2018 consolidation of James and Nolan.