On January 1, 2023, Corgan Company acquired 70 percent of the outstanding voting stock of Smashing, Incorporated, for a total of $1,190,000 in cash and other consideration. At the acquisition date, Smashing had common stock of $850,000, retained earnings of $400,000, and a noncontrolling interest fair value of $510,000. Corgan attributed the excess of fair value over Smashing's book value to various covenants with a 20 -year remaining life. Corgan uses the equity method to account for its investment in Smashing. During the next two years, Smashing reported the following: Corgan sells inventory to Smashing using a 60 percent markup on cost. At the end of 2023 and 2024, 50 percent of the current year purchases remain in Smashing's inventory. Required: a. Compute the equity method balance in Corgan's Investment in Smashing. Incorporated, account as of December 31, 2024. b. Prepare the worksheet adjustments for the December 31,2024 , consolidation of Corgan and Smashing. On January 1, 2023, Corgan Company acquired 70 percent of the outstanding voting stock of Smashing, Incorporated, for a total of $1,190,000 in cash and other consideration. At the acquisition date, Smashing had common stock of $850,000, retained earnings of $400,000, and a noncontrolling interest fair value of $510,000. Corgan attributed the excess of fair value over Smashing's book value to various covenants with a 20 -year remaining life. Corgan uses the equity method to account for its investment in Smashing. During the next two years, Smashing reported the following: Corgan sells inventory to Smashing using a 60 percent markup on cost. At the end of 2023 and 2024, 50 percent of the current year purchases remain in Smashing's inventory. Required: a. Compute the equity method balance in Corgan's Investment in Smashing. Incorporated, account as of December 31, 2024. b. Prepare the worksheet adjustments for the December 31,2024 , consolidation of Corgan and Smashing