On January 1, 2020, McIlroy, Inc., acquired a 60 percent interest in the common stock of Stinson, Inc., for $334,200. Stinson's book value on that date consisted of common stock of $100,000 and retained earnings of $197,600. Also, the acquisition-date fair value of the 40 percent noncontrolling interest was $222,800. The subsidiary held patents (with a 10-year remaining life) that were undervalued within the company's accounting records by $75,700 and an unrecorded customer list (15-year remaining life) assessed at a $51,300 fair value. Any remaining excess acquisition-date fair value was assigned to goodwill. Since acquisition, McIlroy has applied the equity method to its Investment in Stinson account and no goodwill impairment has occurred. At year-end, there are no intra-entity payables or receivables. Intra-entity inventory sales between the two companies have been made as follows: Year Cost to McIlroy Transfer Price to Stinson Ending Balance (at transfer price) 2020 $124,800 $156,000 $52,000 2021 112,500 150,000 37,500 The individual financial statements for these two companies as of December 31, 2021, and the year then ended follow: McIlroy, Inc. Stinson, Inc. Sales $ (720,000 ) $ (357,000 ) Cost of goods sold 473,200 218,200 Operating expenses 194,415 74,400 Equity in earnings in Stinson (33,071 ) 0 Net income $ (85,456 ) $ (64,400 ) Retained earnings, 1/1/21 $ (761,700 ) $ (281,800 ) Net income (85,456 ) (64,400 ) Dividends declared 47,000 17,200 Retained earnings, 12/31/21 $ (800,156 ) $ (329,000 ) Cash and receivables $ 272,700 $ 149,800 Inventory 256,100 130,600 Investment in Stinson 390,477 0 Buildings (net) 332,000 203,900 Equipment (net) 237,100 87,800 Patents (net) 0 22,300 Total assets $ 1,488,377 $ 594,400 Liabilities $ (388,221 ) $ (165,400 ) Common stock (300,000 ) (100,000 ) Retained earnings, 12/31/21 (800,156 ) (329,000 ) Total liabilities and equities $ (1,488,377 ) $ (594,400 ) (Note: Parentheses indicate a credit balance.) Show how McIlroy determined the $390,477 Investment in Stinson account balance. Assume that McIlroy defers 100 percent of downstream intra-entity profits against its share of Stinsons income. Prepare a consolidated worksheet to determine appropriate balances for external financial reporting as of December 31, 2021