On January 1, 2020, James Company purchased 100 percent of the outstanding voting stock of Nolan, Inc, for \\( \\$ 1,000,000 \\) in cash and other consideration, At the purchase date, Nolan had common stock of \\( \\$ 500,000 \\) and retained earnings of \\( \\$ 185,000 \\). James attributed the excess of acquisition-date fair value over Nolan's book value to a trade name with an estimated 25 -year remaining useful life. James uses the equity method to account for its investment in Nolan. During the next two years, Nolan reported the following: Nolan sells inventory to James after a markup based on a gross profit rate. At the end of 2020 and 2021,30 percent of the current year purchases remain in James's inventory. Using the attached Excel template, compute the following: 1. The Equity Method balance in James' Investment in Nolan, Inc., account as of December 31, 2021 2. Worksheet adjustments for the December 31, 2021 adjustments of James and Nolan. Use the following Codes to designate the purpose of the joumal entry: Formulate your solution so that Nolan's gress profit rate on sales to James is treated as a variable