On January 1, 2020, Mcllroy, Inc., acquired a 60 percent interest in the common stock of Stinson, Inc., for $392,400. Stinson's book value on that date consisted of common stock of $100,000 and retained earnings of $231,900. Also, the acquisition-date fair value of the 40 percent noncontrolling interest was $261,600. The subsidiary held patents (with a 10-year remaining life) that were undervalued within the company's accounting records by $81,700 and an unrecorded customer list (15-year remaining life) assessed at a $57,000 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: Transfer Price 2021 Year Cost to McIlroy 2020 $130,800 113,400 to Stinson $163,500 151,200 Ending Balance (at transfer price) $54,500 37,800 The individual financial statements for these two companies as of December 31, 2021, and the year then ended follow: Transfer Price Year Cost to McIlroy 2020 2021 $130,800 113,400 to Stinson $163,500 151,200 Ending Balance (at transfer price) $54,500 37,800 The individual financial statements for these two companies as of December 31, 2021, and the year then ended follow: Sales McIlroy, Inc. $ (741,000) Stinson, Inc. $ (377,000) Cost of goods sold 487,000 Operating expenses 199,020 Equity in earnings in Stinson (35,308) 230,200 78,400 0 Net income $ (90,288) $ (68,400) Retained earnings, 1/1/21 Net income Dividends declared $ (792,000) (90,288) 49,100 $ (283,800) (68,400) 19,600 Retained earnings, 12/31/21 $ (833,188) $ (332,600) Cash and receivables $ 283,600 $ Inventory 266,400 151,400 132,000 Investment in Stinson 429,006 0 Buildings (net) 347,000 206,500 Equipment (net) Patents (net) Total assets Liabilities 247,700 90,100 24,800 $ 1,573,706 $ (440,518) $ (172,200) $ 604,800 Common stock Retained earnings, 12/31/21 Total liabilities and equities (300,000) (833,188) (100,000) (332,600) $ (604,800) $(1,573,706) b. Prepare a consolidated worksheet to determine appropriate balances for external financial reporting as of December 31, 2021