On January 1, 2020, Meliroy, Inc., acquired s 60 percent interest in the common stock of Senson, Inc., for $379,000. Stinson's book value on that clate consisted of common stock of $100.000 and retained eamings of $223,400. Also, the acquisition-dste fair value of the 40 percent noncontrolling interest w $252.000. The subsidiary held patents(with a 10-year remaining life that were undervalued within the company's sccounting records by $90.800 and an unrecorded customer list (15-year remaining life stressed at a $56,400 fsir value. Any remaining excess scquiston date isir value was assigned to goodwill Since scquiston, Mcllroy has applies the equity method to investment in Stinson account and no goodwill impairment has occurred. At year-end, there are no intrs-entry payable or receivables Intrs-entity Inventory sales between the two companies have been made as follows: Transfer Price Ending Balance Cost to Mcllroy to Stinson (at transfer price) $138,280 $162,750 $54,250 158,ce 37,50 Year 2828 2821 The individual financial statements for these two companies as of December 31, 2021, and the year then ended follow Stinson, Inc. $ 374,00) 77.800 Sales Cost of goods sold Operating expenses Equity in cand 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, 12/11/21 Total liabilities and equities (67.se) $(283,700) Mcllroy, Inc. $ 74,900) 485,300 199,215 (35,851) (89,536) $ 791,100) (89,536) 48,00 (831,836) S 283,400 2,200 419.612 346, 19. $ (332,160) S 151,200 131, 206,100 29.00 24, S $1,162,227 $ 438,481) (300,00) (831,836) $(1,562,227) 6a3,500 (171) (128) 332, 100) (6a3,5ca) (Note: Parentheses Indicate credit balance.) .. Show how Mcllroy determined the $419.637 Investment in Stinson account balance. Assume that Mcllroy defers 100 percent of downstream Intrs-entity profits against share of Stinson's Income b. Prepare a consolidated worksheet to determine appropriate balances for external financial report ng as of December 31 2021. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Show how Mcllroy determined the $419,637 Investment in Stinson account balance. Assume that Mcllroy 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.) 2020 ending inventory profit deferral Mcllroy's equity inamings of Stinson for 2021 Excess fair value amortization OOO 0 0 Regu Required B > Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Show how McIlroy determined the $419,637 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.) 2020 ending inventory profit deferral Mcllroy's equity in earnings of Stinson for 2021 Excess fair value amortization X 0 IS 0 Required A Required B Prepare a consolidated worksheet to determine appropriate balances for external financial reporting as of December 31, 2021. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Input all amounts as positive values.) Show less MCILROY, INC., AND STINSON, INC. Consolidation Worksheet For Year Ending December 31, 2021 Consolidation Entries Consolidated Accounts Mcllroy Stinson Debit Credit NCI Totals Sales $ (740,000) IS (374,000) IS 150,000 (984,000) Cost of goods sold 486,300 228,400 9.375 150,000 563,225 Operating expenses 199,215 77.800 11,840 288,855 Equity in earnings of Stinson (35,051) 0 35,051 Separate company net income (89,536) (67.800) Consolidated net income IS (111.920) To noncontrolling interest (22.384) X 22,384 To Mcllroy, Inc. (89.536) Retained earnings 1/1/21 (791,100) (283,700) 283.700 (791,100) Net income (89,536) (67.800) (89,536) Dividends declared 48,800 19,400 11,640 7.760 48,800 Retained earnings 12/31/21 $ (831,836) $ (332,100) $ (831,836) Cash and receivables IS 283,400 $ 151,200 IS 434,800 Inventory 266,200 131,800 9,375 388,625 Investment in Stinson 419,637 0 419,837 X Buildings (net) 346,000 206,100 552,100 Equipment (net) 247.000 89,900 336.900 Patents (net) 0 24,500 77,040 8,080 93,460 % Customer list 48,320 3.760 44,560 Goodwill 169,400 169,400 Total assets IS 1.562,237 603,500 IS 2,019,645 Liabilities (430,401) (171,400) (601,801) Common stock (300.000) (100,000) 100,000 (300,000) Noncontrolling interest 1/1/21 153.480 Noncontrolling interest 12/31/21 IS 286,008 (286,008) X Retained earnings 12/31/21 (831,836) (332.100) (831,836) Total liabilities and equities $ (1.562,237) $ (603,500) IS 884,726 IS 755,972 $ 2.019,645)