On January 1, 2020, Mciltroy, Inc, ocquired a 60 percent interest in the common stock of Stinson, inc, for $420,000. Stinsor's book volue an thit date consisted of cotrmon stock of $100.000 and retained eacting5 of $248,300. Also, the acquietion-dote fair value of the 40 percent noncontolling intereot was $280,000. The subaidaty held parents (with a 10 -year remaining ifel that were undervalued Within the coimpany's accounting records by $87,100 ond an unrecorded customer list (15-year remaining iffe) as that wed ot a $63,000 fair value Any remaining excess ocquistion date falr value was assigned to goodwils Since ocquisition, Mclloy has applled the equity method to ati hvestment in Stinson account and no goodwill impoigment has occurred. At yeat-end, there are no intra-entity payables orreceivables. Intro-enity inventory sales between the two campanies have been made as folliows The individuni financial starements for there two companies as of December 31, 2021, and the year then ended follow: c. Show how Mclloy determined the $448,688 investment in Stinson occount balance. Assume thot Mc llray defers 100 percent of downerream intra-entity protits against its share of Strison's income. b. Prepare n consolidated worksheet to determine oppropriote balances for extemal financial reporting as of December 31,2021. Answer is not complete. Complete this question by entering your answers in the tabs below. Precore a consolldated worksheet to determine approoriate balances for external finandial reporting as of December 31,2021 . (For accounts where multiple consolidation entries are required, cornbene Al dobit entrida into one amount and enter this amount in the debit column of the workshoet. Simitarty, combisie all credit entriee into one amount and enter this amount in the credit column of the worksheet. (novit all amounts as positive values.) On January 1, 2020, Mciltroy, Inc, ocquired a 60 percent interest in the common stock of Stinson, inc, for $420,000. Stinsor's book volue an thit date consisted of cotrmon stock of $100.000 and retained eacting5 of $248,300. Also, the acquietion-dote fair value of the 40 percent noncontolling intereot was $280,000. The subaidaty held parents (with a 10 -year remaining ifel that were undervalued Within the coimpany's accounting records by $87,100 ond an unrecorded customer list (15-year remaining iffe) as that wed ot a $63,000 fair value Any remaining excess ocquistion date falr value was assigned to goodwils Since ocquisition, Mclloy has applled the equity method to ati hvestment in Stinson account and no goodwill impoigment has occurred. At yeat-end, there are no intra-entity payables orreceivables. Intro-enity inventory sales between the two campanies have been made as folliows The individuni financial starements for there two companies as of December 31, 2021, and the year then ended follow: c. Show how Mclloy determined the $448,688 investment in Stinson occount balance. Assume thot Mc llray defers 100 percent of downerream intra-entity protits against its share of Strison's income. b. Prepare n consolidated worksheet to determine oppropriote balances for extemal financial reporting as of December 31,2021. Answer is not complete. Complete this question by entering your answers in the tabs below. Precore a consolldated worksheet to determine approoriate balances for external finandial reporting as of December 31,2021 . (For accounts where multiple consolidation entries are required, cornbene Al dobit entrida into one amount and enter this amount in the debit column of the workshoet. Simitarty, combisie all credit entriee into one amount and enter this amount in the credit column of the worksheet. (novit all amounts as positive values.)
