On January 1, 2019, Monica Company acquired 80 percent of Young Companys outstanding common stock for $904,000 The fair value of the noncontrolling interest at the acquisition date was $226,000 Young reported stockholders equity accounts on that date as follows Common stock$10 par value $ 200,000 Additional paid in capital 90,000 Retained earnings 650,000 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 $50,000 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 40 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 Transfer Price Inventory Remaining at Year End (at transfer price) 2019 $ 50,000 $ 34,000 2020 70,000 36,000 2021 80,000 42,000 In addition, Monica sold Young several pieces of fully depreciated equipment on January 1, 2020, for $60,000 The equipment had originally cost Monica $98,000 Young plans to depreciate these assets over a 6 year period In 2021, Young earns a net income of $220,000 and declares and pays $75,000 in cash dividends These figures increase the subsidiary's Retained Earnings to a $980,000 balance at the end of 2021 Monica employs the equity method of accounting Hence, it reports $164,880 investment income for 2021 with an Investment account balance of $1,056,960 Prepare the worksheet entries required for the consolidation of Monica Company and Young Company 1 Prepare Entry G 2 Prepare Entry TA 3 Prepare Entry C 4 Prepare Entry S 5 Prepare Entry A 6 Prepare Entry I 7 Prepare Entry D 8 Prepare Entry E 9 Prepare Entry TI 10 Prepare Entry G 11 Prepare Entry ED

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On January 1, 2019, Monica Company acquired 80 percent of Young Companys outstanding common stock for $904,000. The fair value of the noncontrolling interest at

On January 1, 2019, Monica Company acquired 80 percent of Young Companys outstanding common stock for $904,000. The fair value of the noncontrolling interest at the acquisition date was $226,000. Young reported stockholders equity accounts on that date as follows:


Common stock$10 par value	$	200,000
Additional paid-in capital		90,000
Retained earnings		650,000

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 $50,000. 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 40 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	Transfer Price		Inventory Remaining at Year-End (at transfer price)
2019	$	50,000	$	34,000
2020		70,000		36,000
2021		80,000		42,000

In addition, Monica sold Young several pieces of fully depreciated equipment on January 1, 2020, for $60,000. The equipment had originally cost Monica $98,000. Young plans to depreciate these assets over a 6-year period.

In 2021, Young earns a net income of $220,000 and declares and pays $75,000 in cash dividends. These figures increase the subsidiary's Retained Earnings to a $980,000 balance at the end of 2021.

Monica employs the equity method of accounting. Hence, it reports $164,880 investment income for 2021 with an Investment account balance of $1,056,960. Prepare the worksheet entries required for the consolidation of Monica Company and Young Company.