On January 1, 2021, Sledge had common stock of $370,000 and retained earnings of $510,000. During that year, Sledge reported sales of $380,000, cost of goods sold of $195,000, and operating expenses of $65,000. On January 1, 2019, Percy, Inc., acquired 80 percent of Sledge's outstanding voting stock. At that date, $85,000 of the acquisition-date fair value was assigned to unrecorded contracts (with a 20-year life) and $45,000 to an undervalued building (with a 10-year remaining life). In 2020, Sledge sold inventory costing $20,000 to Percy for $40,000. Of this merchandise, Percy continued to hold $9,000 at year- end. During 2021, Sledge transferred inventory costing $24,750 to Percy for $45,000. Percy still held half of these items at year-end. On January 1, 2020, Percy sold equipment to Sledge for $24,500. This asset originally cost $41,000 but had a January 1, 2020, book value of $14,000. At the time of transfer, the equipment's remaining life was estimated to be five years. Percy has properly applied the equity method to the investment in Sledge. a. Prepare worksheet entries to consolidate these two companies as of December 31, 2021. b. Compute the net income attributable to the noncontrolling interest for 2021. Required A Required B Prepare worksheet entries to consolidate these two companies as of December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Transaction Accounts Debit Credit 1 1 4,500 Retained earnings Cost of goods sold 4,500 >> >> 2 2 16,500 Equipment Investment in Sledge Accumulated depreciation-Equipment 8,400 24,900 3 3 Common stock 370.000 Retained earnings Investment in Sledge Noncontrolling interest in Sledge OOO 505,500 700,400 175, 100 4 76,500 36,000 Contracts Buildings Investment in Sledge Noncontrolling interest in Sledge 90,000 22.500 5 5 174,500 Equity in income of Sledge Investment in Sledge ON 174,500 X 6 8 Depreciation expense Amortization expense 4,500 4,250 Contracts 4.250 4,500 Buildings 7 7 Sales 45,000 Cost of goods sold 45,000 8 8 10.125 Cost of goods sold Inventory 10,125 9 9 900 Accumulated depreciation Equipment Depreciation expense 900