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On January 1, 2020, Mcllroy, Inc, acqulred a 60 percent Interest in the common stock of Stinson, Inc, for $383,400. Stinson's book value on that

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On January 1, 2020, Mcllroy, Inc, acqulred a 60 percent Interest in the common stock of Stinson, Inc, for $383,400. Stinson's book value on that date consisted of common stock of $100,000 and retained earnings of $226,700. Also, the acquisition-date falr value of the 40 percent noncontroling Interest was $255,600. The subsidiary held patents (with a 10 -year remaining life) that were undervalued within the company's accounting records by $88,000 and an unrecorded customer llst (15-year remaining life) assessed at a $63,900 fair value. Any remaining excess acquisition-date falr value was assigned to goodwili. Since acquisition. Mcliroy has applled 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 recelvables. Intra-entity inventory sales between the two companles have been made as follows: The indlvidual 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 Mclitoy determined the $425,348 investment in Stinson account balance. Assume that Mcliroy defors 100 percent o downstream intro-entity profits against its share of Stinson's income. b. Prepare a consolideted worksheet to determine approprlate balances for external financial reporting as of December 31,2021 . Complete this questian by entering your answers in the tabs below. b. Prepare a consolidated worksheet to determine appropriate balances for external financlal reporting as of December 31,2021 Complete this question by entering your answers in the tabs below. Show how McIIroy determined the $425,348 Investment in Stinson account balance. Assume that Mctiroy 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.) Consollitaidan Workehed Fer Year Enaing Decamber 31, 2024

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