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On January 1, 2020, Corgan Company acquired 70 percent of the outstanding voting stock of Smashing, Inc. for a total of $980,000 in cash and

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On January 1, 2020, Corgan Company acquired 70 percent of the outstanding voting stock of Smashing, Inc. for a total of $980,000 in cash and other consideration. At the acquisition date, Smashing had common stock of $790,000, retained earnings of $340,000, and a noncontrolling interest fair value of $420,000. 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: Dividends Declared $44,000 Net Income $240,000 220.000 Inventory Purchases from Corgan 5190,000 210,000 2020 2021 54,000 Corgan sells inventory to Smashing using a 60 percent markup on cost. At the end of 2020 and 2021 50 percent of the current year purchases remain in Smashing's inventory o. Compute the equity method balance in Corgan's Investment in Smashing, Inc., account as of December 31, 2021 b. Prepare the worksheet adjustments for the December 31, 2021, 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, 2021 Investment balance 12/3121 re Required) a. Compute the equity method balance in Corgan's Investment in Smashing, Inc.account as of December 31, 2021 b. Prepare the worksheet adjustments for the December 31, 2021 consolidation of Corgan and Smashing Complete this question by entering your answers in the tabs below. Required A Required B Prepare the worksheet adjustments for the December 31, 2021, consolidation of Corgan and Smashing, (if no entry is required for transaction/event, select "No Journal entry required in the first account field) View transaction list Consolidation Worksheet Entries 1 2 3 4 5 6 7 8 Prepare entry "G Note: Enter debts before credits Transaction Accounts Dobit Cred Record entry Clear entry View consolidation eines Prepare entry s Note: Enter debits before credits Transaction Account Deb Record entry Clear entry VW Consolidamente Prepare entry Notes Enter debits before credits Accounts Debit Credit Transaction 3 Record entry Clear entry View consolidation entries Prepare entry I Note: Enter debits before credits Transaction Accounts Debit Credit View Consolidation entries Record entry Clear entry 2 3 4 5 6 7 Prepare entry G Note: Enter debits before credits. Transaction Accounts Debit Credit 8 Record entry Clear entry view consolidation entries Prepare the worksheet adjustments for the December 31, 2021, consolidation of Corgan and Smashing. (IF transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries 4 Prepare entry s Note: Enter debits before credits Required A Required B Prepare the worksheet adjustments for the December 31, 2021, consolidation of Corgan and Smashing. (If no transaction/event, select "No journal entry required" in the first account field.) view transaction list Consolidation Worksheet Entries

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