On January 1, 2020, Delaney Enterprises (DES) acquired an 80% interest in Small Manufacturing Company (SMC). DES paid for the transaction with $1,200,000 cash. At the time of the acquisition, SMC's book value was $1,000,000.

On January 1, 2020 the non-controlling interest shares in SMC were valued at $260,000. Any consideration transferred over fair value is assigned to goodwill. SMC had the following balances on January 1, 2020.

	Book	Fair
	Value	Value
Patent (four-year remaining life)	$100,000	$200,000
Buildings (ten-year remaining life)	500,000	700,000

The following account balances are for the year ending December 31, 2021 (one year later) for both companies.

	DES, Inc.	SMC, Inc.
Revenues	$(3,600,000)	$(280,000)
Expenses	2,200,000	100,000
Dividend income	( 80,000)	0
Net income	$( 1,480,000)	$( 180,000)
Retained earnings, January 1, 2021	$( 4,400,000)	$( 500,000)
Net income (above)	( 1,480,000)	( 180,000)
Dividends paid	150,000	100,000
Retained earnings, December 31, 2021	$( 5,730,000)	$( 580,000)
Current Assets	$ 1,250,000	$ 20,000
Investment in SMC, Inc.	1,200,000
Patent	-0-	80,000
Buildings	2.020,000	450,000
Equipment (net)	6,435,000	1,000,000
Total assets	$ 10,905,000	$ 1,550,000
Accounts payable	$( 275,000)	$ (120,000)
Notes payable		( (250,000)
Common stock	( 1,500,000)	( 500,000)
Additional paid-in capital	( 3,400,000)	( 100,000)
Retained earnings, Dec. 31, 2021 (above)	( 5.730,000)	( 580,000)
Total liabilities and stockholders equity	$ (10,905,000)	$( 1,550,000)

Required:

1. Prepare all of the consolidation worksheet entries.
2. Prepare a consolidation worksheet for this business combination. Assume goodwill has been reviewed and there is no goodwill impairment.