On January 1, 2020, Mcllroy, Inc., acquired a 60 percent interest in the common stock of Stinson, Inc., for $365,400. Stinson's book value on that date consisted of common stock of $100,000 and retained earnings of $216,100. Also, the acquisition-date fair value of the 40 percent noncontrolling interest was $243,600. The subsidiary held patents (with a 10-year remaining life) that were undervalued within the company's accounting records by $75,100 and an unrecorded customer list (15-year remaining life) assessed at a $50,700 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: 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.) a. Show how Mcllroy determined the $410,467 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. a. Show how Mcllroy determined the $410,467 Investment in Stinson account balance. Assume that Mcllroy defers 100 perce 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 $410,467 Investment in Stinson account balance. Assume that McIlroy 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.) \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{10}{|c|}{ MCILROY, INC., AND STINSON, INC. } \\ \hline \multicolumn{10}{|c|}{ Consolidation Worksheet } \\ \hline \multicolumn{10}{|c|}{ For Year Ending December 31, 2021} \\ \hline & & & \multirow{2}{*}{\multicolumn{2}{|c|}{ Stinson }} & \multicolumn{3}{|c|}{ Consolidation Entries } & \multirow[b]{2}{*}{NCl} & \multirow[b]{2}{*}{\begin{tabular}{c} Consolidate \\ Totals \end{tabular}} \\ \hline Accounts & \multicolumn{2}{|r|}{ Mcllroy } & & & & Debit & Credit & & \\ \hline Sales & $ & (717,000) & $ & (356,000) & $ & 150,800 & & & (922,201 \\ \hline Cost of goods sold & & 471,200 & & 217,600 & & 9,425 & 10,375 & & 537,05 \\ \hline Operating expenses & & 193,440 & & 74,200 & & & 150,800 & & 278,53 \\ \hline Equity in earnings of Stinson & & (32,936) & & 0 & & 32,936 & & & \\ \hline Separate company net income & & (85,296) & & (64,200) & & & & & \\ \hline Consolidated net income & & & & & & & & & (106,621 \\ \hline To noncontrolling interest & & & & & & & & (21,324) & 21,32 \\ \hline To Mcllroy, Inc. & & & & & & & & & (85,291 \\ \hline Retained earnings 1/1/21 & & (753,900) & & (281,400) & & 281,400 & & & (753,901 \\ \hline Net income & & (85,296) & & (64,200) & & & & & (85,291 \\ \hline Dividends declared & & 46,700 & & 16,900 & & & 10,140 & 6,760 & 46,70 \\ \hline Retained earnings 12/31/21 & $ & (792,496) & $ & (328,700) & & & & & (792,491 \\ \hline Cash and receivables & $ & 269,800 & $ & 149,700 & & & & & 419,50 \\ \hline Inventory & & 253,400 & & 130,500 & & & 9,425 & & 374,47 \\ \hline Investment in Stinson & & 410,467 & & 0 & & 10,140 & 228,840 & & \\ \hline Buildings (net) & & 328,000 & & 203,800 & & & 169,206 & & 531,8C \\ \hline Equipment (net) & & 234,200 & & 87,400 & & & 32,936 & & 321,60 \\ \hline Patents (net) & & 0 & & 22,000 & & 67,590 & 7,510 & & 82,08 \\ \hline Customer list & & & & & & 47,320 & 3,380 & & 43,94 \\ \hline Goodwill & & & & & & 167,100 & & & 167,10 \\ \hline Total assets & $ & 1,495,867 & $ & 593,400 & & & & & $1,940,4C \\ \hline Liabilities & & (403,371) & & (164,700) & & & & & (568,07 \\ \hline Common stock & & (300,000) & & (100,000) & & 100,000 & & & (300,001 \\ \hline Noncontrolling interest 1/1/21 & & & & & & & 152,560 & 265,364 & \\ \hline Noncontrolling interest 12/31/21 & & & & & & & & $279,928 & (279,92i \\ \hline Retained earnings 12/31/21 & & (792,496) & & (328,700) & & & & & (792,491 \\ \hline Total liabilities and equities & $ & (1,495,867) & $ & (593,400) & $ & 866,711 & 775,172 & & 1,940,4C \\ \hline \end{tabular}