On January 1, 2020, Mcllroy, Inc. acquired a 60 percent interest in the common stock of Stinson, Inc., for $358,200. Stinson's book value on that date consisted of common stock of $100.000 and retained earnings of $211,800. Also, the acquisition date fair value of the 40 percent noncontrolling interest was $238,800. The subsidiary held patents (with a 10-year remaining life) that were undervalued within the company's accounting records by $89.200 and an unrecorded customer list (15-year remaining life) assessed at a $65,100 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 $139,200 112,800 Transfer Price to Stinson $174,000 150,400 Ending Balance (at transfer price) $58,000 37,600 The individual financial statements for these two companies as of December 31, 2021, and the year then ended follow. Stinson, Inc. 5 (407,000) 248,200 84,400 Sales Cost of goods sold Operating expenses Equity in earnings in Stinson Net Income Retained earnings, 1/1/21 Net Income Dividends declared McIlroy, Inc. $ (766,000) 503,500 203,560 (38,884) 5 (97,824) S (851,000) (97,824) 52, 100 $ (74,400) 5 (286,980) (74,400) 21,800 mas 21,800 $ (339,500) 5 154,600 134,600 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 52, 100 $ (896,724) $ 304,900 286,500 409,508 379,000 270,400 0 $ 1,650,308 S (453.584) (300,000) 1896,224) $(1,650,308) 209,100 92,500 27.600 $ 618,400 $ (178,900) (100,000) (239,500) (618,400) Note: Parentheses indicate a credit balance) 2. Show how Mcllroy determined the $409,508 Investment in Stinson account balance. Assume that Mcllroy defers 100 percent of downstream intra-entity profits against its share of Stinson's income. . Prepare a consolidated worksheet to determine appropriate balances for external financial reporting as of December 31, 2021