On January 1, 2020, McIlroy, Inc., acquired a 60 percent interest in the common stock of Stinson, Inc., for $383,400. Stinson's book value on that date consisted of common stock of $100,000 and retained earnings of $226,700. Also, the acquisition-date fair value of the 40 percent noncontrolling interest was $255,600. The subsidiary held patents (with a 10-year remaining life) that were undervalued within the company's accounting records by $88,000 and an unrecorded customer list (15-year remaining life) assessed at a $63,900 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	$138,300	$172,875	$57,625
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	$	(763,000	)		$	(403,000	)
Cost of goods sold		501,500				245,800
Operating expenses		203,085				83,600
Equity in earnings in Stinson		(38,449	)			0
Net income	$	(96,864	)		$	(73,600	)
Retained earnings, 1/1/21	$	(840,900	)		$	(286,200	)
Net income		(96,864	)			(73,600	)
Dividends declared		51,600				21,400
Retained earnings, 12/31/21	$	(886,164	)		$	(338,400	)
Cash and receivables	$	301,200			$	154,100
Inventory		283,000				134,200
Investment in Stinson		425,348				0
Buildings (net)		374,000				208,700
Equipment (net)		266,900				92,200
Patents (net)		0				27,000
Total assets	$	1,650,448			$	616,200
Liabilities	$	(464,284	)		$	(177,800	)
Common stock		(300,000	)			(100,000	)
Retained earnings, 12/31/21		(886,164	)			(338,400	)
Total liabilities and equities	$	(1,650,448	)		$	(616,200	)

(Note: Parentheses indicate a credit balance.)

Show how McIlroy determined the $425,348 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.