On January 1, 2020, Mcliroy, 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, Mcllroy 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: The individual financial statements for these two companies as of December 31, 2021, and the year then ended follow. (Note: Parentheses indicate a credit balance.) Hint Stinson's net income minus dividends for 2020 is equal to its change in R/E in 2020. a. Show how Mcllroy determined the $385,338 Investment in Stinson account balance. Assume that Mcilroy defers 100 percent of downstream intra-entity profits against its share of Stinson's income. b. Prepare a consolidated worksheet to determine appropriate balances for external financial reporting as of December 31,2021 . Complete this question by entering your answers in the tabs below. Show how McIlroy determined the $385,338 Investment in Stinson account balance. Assume that Mcliroy defers 100 percent of downstream intra-entity profits against its share of Stinson's income. (Amounts to be deducted should be indicated with a minus sign.)