On January 1, 2019, Monica Company acquired 80 percent of Young Company's outstanding common stock for $872,000. The fair value of the noncontrolling interest at the acquisition date was $218,000. Young reported stockholders' equity accounts on that date as follows: Common stock-$10 par value Additional paid-in capital Retained earnings $ 100,000 50,000 610,000 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 $70,000. 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: Year 2019 2020 2021 Transfer Price $ 80,000 100,000 110,000 Inventory Remaining at Year-End (at transfer price) $ 30,000 32,000 38,000 In addition, Monica sold Young several pleces of fully depreciated equipment on January 1, 2020, for $56,000. The equipment had originally cost Monica $90,000. Young plans to depreciate these assets over a 5-year period. In 2021, Young earns a net income of $180,000 and declares and pays $55,000 in cash dividends. These figures increase the subsidiary's Retained Earnings to a $940,000 balance at the end of 2021. Monica employs the equity method of accounting. Hence, it reports $121,760 Investment Income for 2021 with an Investment account balance of $997,280. Prepare the worksheet entries required for the consolidation of Monica Company and Young Company. (If no entry is required for a transaction/event, select "No Journal Entry Required" In the first account field.) view transaction list transaction list No Transaction Debit Credit 1 1 Accounts Retained earnings, 1/1/21 (Young) Cost of goods sold 9,600 9,600 Answer is not complete. No Debit Credit Transaction 1 1 Account Retained earnings, 1/1/21 (Young) Cost of goods sold 9,600 OO 9.600 N 2 2 Investment in Young Equipment Accumulated depreciation Equipment OOO 3 3 No journal entry required 4. 4 Common stock - Young Additional paid in capital - Young Retained earnings, 1/1/21 (Young) Investment in Young Noncontrolling interest in Young OOOOO 5 5 Franchise agreement Buildings Investment in Young Noncontrolling interest in Young OOOO 6 Investment income Investment in Young O 7 7 Investment in Young Dividends declared OOO 8 8 Depreciation expense Amortization expense Franchise agreement Buildings OOOO 9 9 Sales Cost of goods sold lolo 10 10 Cost of goods sold Inventory Olo 11 11 Accumulated depreciation-Equipment Depreciation expense OO