On January 1, 2017, Mcllroy, Inc., acquired a 60 percent interest in the common stock of Stinson, Inc., for $340,200. Stinson's book value on that date consisted of common stock of $100.000 and retained earnings of $201,100. Also, the acquisition date fair value of the 40 percent noncontrolling Interest was $226,800 The subsidiary held patents with a 10-year remaining life) that were undervalued within the company's accounting records by $76,900 and an unrecorded customer list 15-year remaining life) assessed at a $52.800 fair value. Any remaining excess acquisition date feir value was assigned to goodwill Since acquisition, Mcllroy has applied the equity method to its Investment in Stinson account and no goodwill impairment has occurred. At year end. there are no intra-entity payables or receivables. Intra-entity inventory sales between the two companies have been made as follows: Year 2017 Cost to Mcllroy $128.300 112,500 Transfer Price to Stinson S157 875 150 000 Ending Balance (at transfer price) 552.825 37,500 2018 The individual financial statements for these two companies as of December 31, 2018, and the year then ended follow Stinson, Inc S (362.000) 221,200 75.400 $ MitroyInc $ 726,000) 477 200 195.760 (33 664) (86.704) 770.600) (86.704) 47.500 $ 800 804) 276.000 259.200 394,533 334.000 238,500 Sales Coat of goods sold Operating expenses Equity in earnings in Stinson Net income Retained earings. 1/1/18 Nat income Dividends declared Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Stinson Buildings (net) Equipment (net) Patents (net) Total assets Labilities Common stock Retained earnings, 12/31/18 Total liabilities and equities (65.400) (2822001 (65.4001 17.900 (329,700) 150.100 130.000 $ $ $ 1,502,233 1992.429) 204.600 88.400 22.800 596 800 (167,100) (100.000) (329,700) (596,800) S 300 000) 309 804) 1,502,233) $ S a. Show how Mcllroy determined the $394,533 Investment in Stinson account balance. Assume that Mcllroy defers 100 percent of downstream intra-entity profits against its share of Stinson's income b. Prepare a consolidated worksheet to determine appropriate balances for external financial reporting as of December 31, 2018 Complete this question by entering your answers in the tabs below. Required A Prepare a consolidated worksheet to determine appropriate balances for external financial reporting as of December 31, 2018. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Amounts in the Debit and Credit columns should be entered as positive. Negative amounts for the NCI and Consolidated Totals columns should be entered with a minus sign.) Show less Consolidated NCI MCILROY, INC., AND STINSON, INC. Consolidation Worksheet For Year Ending December 31, 2018 Consolidation Entries Mcllray Stinson Debit Credit (725,000) $ (362,000) 477 2001 221,200 195,760 75,400 (33,664) 0 (86,704) 65,400) $ 770,600) 282.2003 Accounts Sales Cost of goods sold Operating expenses Equity in eamings of Stinson Separate company net 1 income Consolidated net income To noncontrolling interest To Mcllroy, Inc Retained earnings, 111 Net Income Dividends declared Retained earnings, 12/31 Cash and receivables Inventory Investment in Stinson Buildings inet) Equipment (net) Patents (not) Customer list Goodwill Total assets Liabilities Common stock Noncontrolling interest 111 Noncontrolling interest 12/31 Retained earnings, 12/31 Total abilities and equities $ $ $ $ ( 185,704) 47,500 (809,804) 276,000 259.200 394 533 334,000 238.500 ol (65,400) 17,900 (329,700) 150,100 130,9001 204,600 88400 22.800 $ $ 1.502 233 (392.429) 596.800 167.100) 1100.000 (300,000) (809,804) (1,502,233) $ (329,700)| 598,800) $ 0 $ 0 $ Required A Required