On January 1, 2020, McIlroy, Inc., acquired a 60 percent interest in the common stock of Stinson, Inc., for $372,000. Stinson's book value on that date consisted of common stock of $100,000 and retained earnings of $219,900. Also, the acquisition-date fair value of the 40 percent noncontrolling interest was $248,000. The subsidiary held patents (with a 10-year remaining life) that were undervalued within the company's accounting records by $79,300 and an unrecorded customer list (15-year remaining life) assessed at a $54,900 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 $127,800 $159,750 $53,250 2021 112,800 150,400 37,600 The individual financial statements for these two companies as of December 31, 2021, and the year then ended follow: McIlroy, Inc. Stinson, Inc. Sales $ (736,000 ) $ (368,000 ) Cost of goods sold 483,700 224,800 Operating expenses 198,540 76,600 Equity in earnings in Stinson (34,256 ) 0 Net income $ (88,016 ) $ (66,600 ) Retained earnings, 1/1/21 $ (780,200 ) $ (283,000 ) Net income (88,016 ) (66,600 ) Dividends declared 48,300 19,000 Retained earnings, 12/31/21 $ (819,916 ) $ (330,600 ) Cash and receivables $ 279,400 $ 150,500 Inventory 262,400 131,200 Investment in Stinson 415,112 0 Buildings (net) 339,000 205,600 Equipment (net) 242,000 89,400 Patents (net) 0 24,000 Total assets $ 1,537,912 $ 600,700 Liabilities $ (417,996 ) $ (170,100 ) Common stock (300,000 ) (100,000 ) Retained earnings, 12/31/21 (819,916 ) (330,600 ) Total liabilities and equities $ (1,537,912 ) $ (600,700 ) (Note: Parentheses indicate a credit 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.

consolidation Entries Accounts Stinson Debit Credit NCI $ $ $ Mcllroy (736,000) 483,700 198,540 (34,256) (88,016) 161,050 (368,000) 224,800 76,600 0 (66,600) 150,400 9,400 11,590 34,256 Consolidated Totals $ (953,600) 556,850 286,730 $ 22,004 283,000 11,400 7,600 110,020 22,004 88,016 780,200 88,016 48,300 819,916 429,900 384,200 $ $ $ $ $ Sales Cost of goods sold Operating expenses Equity in earnings of Stinson Separate company net income Consolidated net income To noncontrolling interest To Mcllroy, Inc. Retained earnings 1/1/21 Net income Dividends declared Retained earnings 12/31/21 Cash and receivables Inventory Investment in Stinson Buildings (net) Equipment (net) Patents (net) Customer list Goodwill Total assets Liabilities Common stock Noncontrolling interest 1/1/21 Noncontrolling interest 12/31/21 Retained earnings 12/31/21 Total liabilities and equities $ (780,200) (88,016) 48,300 (819,916) 279,400 262,400 415,112 339,000 242,000 0 (283,000) (66,600) 19,000 (330,600) 150,500 131,200 0 205,600 89,400 24,000 0 544,600 331,400 6,038 X 45,120 X 165,900 7,930 3,660 165,900 $ $ 1,537,912 (417,996) (300,000) 600,700 (170,100) (100,000) (588,096) (300,000) 100,000 819,916 (819,916) $ (1,537,912) (330,600) (600,700) $ $ 805,704 $ 184,040