On January 1,2020 , Mcliroy, Inc., acquired a 60 percent interest in the common stock of Stinson, Inc., for $327,000. Stinson's book value on that date consisted of common stock of $100.000 and retained earnings of $193,400. Also, the acquisition-date fair value of the 40 percent noncontrolling interest was $218,000. The subsidiary held patents (with a 10-year remaining life) that were undervalued within the company's accounting records by $72,700 and an unrecorded customer list (15-year remaining life) assessed at a $48,600 fair value. Any remaining excess acquisition-dote fair volue was assigned to goodwill. Since acquisition, Mcllroy has applied the equity method to its Investment in Stinson account and no goodwill impoirment has occurred. At year-end, there are no intro-entity payables or receivables: Intro-entity inventory sales between the two companies have been made as follows: The indivdual financial statements for these two companies as of December 31, 2021, and the year then ended follow: (Note: Parentheses Indicate a credit balance.) Hint Stinson's net income minus dividends for 2020 is equal to its change in RiE in 2020. a. Show how Mcllroy determined the $385,338 investment in Stinson account balance. Assume that Mcilroy defers 100 percent of downstream intra-entity profits against its share of Stinson's income. b. Prepare a consolidated worksheet to determine appropnate balances for extemai financial reporting as of December 31,2021