On January 1, 2024, Sledge had common stock of $210,000 and retained earnings of $350,000. During that year, Sledge reported sales of $220,000, cost of goods sold of $115,000, and operating expenses of $49,000.

On January 1, 2022, Percy, Incorporated, acquired 80 percent of Sledge's outstanding voting stock. At that date, $69,000 of the acquisition-date fair value was assigned to unrecorded contracts (with a 20-year life) and $29,000 to an undervalued building (with a 10-year remaining life).

In 2023, Sledge sold inventory costing $13,200 to Percy for $24,000. Of this merchandise, Percy continued to hold $9,000 at year-end. During 2024, Sledge transferred inventory costing $15,950 to Percy for $29,000. Percy still held half of these items at year-end.

On January 1, 2023, Percy sold equipment to Sledge for $16,500. This asset originally cost $25,000 but had a January 1, 2023, book value of $10,800. 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.

Required:

1. Prepare worksheet entries to consolidate these two companies as of December 31, 2024.
2. Compute the net income attributable to the noncontrolling interest for 2024.