Please show answer for Entry A: Franchise agreement / Investment in Young / NCI in Young

On January 1, 2019, Monica Company acquired 80 percent of Young Company's outstanding common stock for $808.000. The fair value of the noncontrolling interest at the acquisition date was $202.000. Young reported stockholders' equity accounts on that date as follows: Common stock-$10 par value Additional paid-in capital Retained earnings $ 200,eee 40, eee 530,eee In establishing the acquisition value. Monica appraised Young's assets and ascertained that the accounting records undervalued a building (with a five-year remaining life) by $50,000. Any remaining excess acquisition-date fair value was allocated to a franchise agreement to be amortized over 10 years. During the subsequent years, Young sold Monica inventory at a 40 percent gross profit rate. Monica consistently resold this merchandise in the year of acquisition or in the period immediately following. Transfers for the three years after this business combination was created amounted to the following: Inventory Remaining Transfer at Year-End Price (at transfer price) $ 70, eee $ 22,880 90,000 24,880 100,000 30,eee Year 2019 2e2e 2021 In addition, Monica sold Young several pieces of fully depreciated equipment on January 1, 2020, for $48,000. The equipment had originally cost Monica $74,000. Young plans to depreciate these assets over a 6-year period. In 2021, Young earns a net income of $260.000 and declares and pays $85.000 in cash dividends. These figures increase the subsidiary's Retained Earnings to a $860,000 balance at the end of 2021. Monica employs the equity method of accounting. Hence, it reports $190.880 investment income for 2021 with an Investment account balance of $960,800. Prepare the worksheet entries required for the consolidation of Monica Company and Young Company. (If no entry is required for a transaction/event, select "No Journal Entry Required" In the first account fleld.) No Transaction Accounts Debit Credit 1 1 9,800 Retained earnings, 1/1/21 (Young) Cost of goods sold ol 9.600 2 2 Equipment Investment in Young Accumulated depreciation Equipment 28,000 40.000 65.000 3 3 No journal entry required > 4 4 Common stock - Young Additional paid-in capital - Young Retained earnings, 1/1/21 (Young) Investment in Young Noncontrolling interest in Young 200,000 40,000 675.400 OOOO 732 320 183,080 5 5 30,000 30,000 Franchise agreement Buildings Investment in Young Noncontrolling interest in Young olololo 49,600 12,400 X 00 Investment income Investment in Young lolo 190,880 190.880 7 7 68,000 Investment in Young Dividends declared 68,000 8 00 10,000 19.000 Depreciation expense Amortization expense Franchise agreement Buildings olololol 19,000 10,000 10 10 12.000 Cost of goods sold Inventory O 12,000 11 11 8.000 Accumulated depreciation Equipment Depreciation expense olo 8,000