On January 1, 2020. Mcllroy, Inc., acquired a 60 percent interest in the common stock of Stinson, Inc., for $412,800. Stinson's book value on that date consisted of common stock of $100,000 and retained earnings of $244.000. Also, the acquisition-date fair value of the 40 percent noncontrolling interest was $275,200. The subsidiary held patents (with a 10-year remaining life) that were undervalued within the company's accounting records by $85.000 and an unrecorded customer list (15-year remaining life) assessed at a $61.200 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 2921 Cost to McIlroy $135,900 112,800 Transfer Price to Stinson $169,875 150,400 Ending Balance (at transfer price) $56,625 37,680 The individual financial statements for these two companies as of December 31, 2021, and the year then ended follow: Stinson, Inc. $ (391, eee) 238,600 81,200 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. $ (753,880) 494,989 201,405 (37,897) $ (93,792) $ (815,780) (93,792) 50,400 $ (859,892) $ 292,180 274,480 443,584 360,000 256,880 @ $ 1,626,884 $ (467,712) (380,000) (859,992) $(1,626,884) $ (71,200) $ (285,400) (71, 200) 20,600 $ (336, eee) $ 153,800 133,300 207,800 91,100 26, 100 $ 611,300 $ (175,300) (180,00) (336, e3e) $ (611, 300) (Note: Parentheses indicate a credit balance.) o. Show how Mcllroy determined the $443,504 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. Complete this question by entering your answers in the tabs below. Required A Required B Show how McIlroy determined the $443,504 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.) MCILROY, INC., AND STINSON, INC. Consolidation Worksheet For Year Ending December 31, 2021 Consolidation Entries Accounts Mcllroy Stinson Debit Credit NCI Consolidated Totals S s (753.000) 494,900 201,405 (37.097) (93.792) (391,000) 238.600 81,200 0 (71,200) Sales Cost of goods sold Operating expenses Equity in earnings of Stinson Separate company net income Consolidated net income To noncontrolling interest To Mcllroy, Inc. 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) Customer list Goodwill (815.700) (93.792) 50,400 (859.002) 292,100 274,400 443.504 (285,400) (71,200) 20.600 (338,000) 153,000 133.300 S s S s 0 380,000 256.800 0 207.800 91.100 26.100 Total assets S 1.620.804 s (467.712) (300.000) 611,300 (175,300) (100,000) Liabilities Common stock Noncontrolling interest 1/1/21 Noncontrolling interest 12/31/21 Retained earnings 12/31/21 Total liabilities and equities (859,092) (1.628.804) $ (336,000) (611,300) S