On January 1, 2020, Mcllroy, Inc., acquired a 60 percent Interest in the common stock of Stinson, Inc., for $384,600. Stinson's book value on that date consisted of common stock of $100,000 and retained earnings of $227,300. Also, the acquisition-date fair value of the 40 percent noncontrolling Interest was $256,400. The subsidiary held patents (with a 10-year remaining life) that were undervalued within the company's accounting records by $77,800 and an unrecorded customer list (15-year remaining life) assessed at a $53,700 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: Year 2020 2021 Cost to McIlroy $126,900 113,100 Transfer Price to Stinson $158,625 150, 800 Ending Balance (at transfer price) $52,875 37,700 The Individual financial statements for these two companies as of December 31, 2021, and the year then ended follow: Sales Cost of goods sold Operating expenses Equity in earnings in Stinson Net income Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Cash and receivables Inventory Investment in Stinson Buildings (net) Equipment (net) Patents (net) Total assets Liabilities Common stock Retained earnings, 12/31/21 Total liabilities and equities McIlroy, Inc. $ (730, eee) 479, see 196,510 (34,054) $ (87,744) $ (771,200) (87,744) 47,7ee $ $ (811,244) $ $ 276,200 259,480 423,463 337, eee 240, 600 Stinson, Inc. $ (366, eee) 223, 6ee 76,200 e $ (66,200) $ (282,600) (66,200 18,3ee $ (338,528) $ 150,500 131,2ee e 205, eee 88,888 23, 2ee $ 598,7ee $ (168, 200) (189, eee) (338,500) $ (598,700) $ 1,536,663 $ (425,419) (3e2,eee) (811,244) $(1,536, 663) (Note: Parentheses Indicate a credit balance.) : ) a. Show how Mcllroy determined the $423,463 Investment in Stinson account balance. Assume that Mcllroy 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