On January 1, 2020, McIlroy, Inc., acquired a 60 percent interest in the common stock of Stinson, Inc., for $327,000. Stinson's book value on that date consisted of common stock of $100,000 and retained earnings of $193,400. Also, the acquisition-date fair value of the 40 percent noncontrolling interest was $218,000. The subsidiary held patents (with a 10-year remaining life) that were undervalued within the company's accounting records by $72,700 and an unrecorded customer list (15-year remaining life) assessed at a $48,600 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 $122,700 $153,375 $51,125 2021 113,400 151,200 37,800 The individual financial statements for these two companies as of December 31, 2021, and the year then ended follow: McIlroy, Inc. Stinson, Inc. Sales $ (708,000 ) $ (347,000 ) Cost of goods sold 465,300 212,200 Operating expenses 191,585 72,400 Equity in earnings in Stinson (31,909 ) 0 Net income $ (83,024 ) $ (62,400 ) Retained earnings, 1/1/21 $ (742,300 ) $ (280,900 ) Net income (83,024 ) (62,400 ) Dividends declared 46,000 15,900 Retained earnings, 12/31/21 $ (779,324 ) $ (327,400 ) Cash and receivables $ 265,700 $ 149,100 Inventory 249,600 129,900 Investment in Stinson 385,338 0 Buildings (net) 318,000 203,200 Equipment (net) 227,100 86,800 Patents (net) 0 21,000 Total assets $ 1,445,738 $ 590,000 Liabilities $ (366,414 ) $ (162,600 ) Common stock (300,000 ) (100,000 ) Retained earnings, 12/31/21 (779,324 ) (327,400 ) Total liabilities and equities $ (1,445,738 ) $ (590,000 ) (Note: Parentheses indicate a credit balance.) Show how McIlroy determined the $385,338 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.