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Prepare the worksheet adjustments for the December 3 1 , 2 0 2 4 , consolidation of Corgan and Smashing. Note: If no entry is

Prepare the worksheet adjustments for the December 31,2024, consolidation of Corgan and Smashing.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
\table[[No,Transaction,Accounts,Debit,Credit],[1,*,Investment in Smashing,,],[,,Cost of goods sold,,],[2,S,Common stock - Smashing,,],[,,Retained earnings - Smashing,,],[,,Investment in Smashing,,],[,,Noncontrolling interest,,],[3,A,Covenants,,],[,,Investment in Smashing,,],[,,Noncontrolling interest,,],[4,I,Equity in earnings of Smashing,,],[,,Investment in Smashing,,],[5,D,Investment in Smashing,,],[,,Dividends declared,,],[6,E,Amortization expense,,],[,,Noncontrolling interest \times ,,],[,,Covenants \times ,,],[7,TI,Sales,,],[,,Cost of goods sold,,],[8,G,No Transaction Recorded,,]]On January 1,2023, Corgan Company acquired 70 percent of the outstanding voting stock of Smashing, Incorporated, for a total of
$1,015,000 in cash and other consideration. At the acquisition date, Smashing had common stock of $800,000, retained earnings of
$350,000, and a noncontrolling interest fair value of $435,000. 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 2024,30 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.
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