Problem 5-35 (Algo) (LO 5-2,5-3,5-4,5-5, 5-7) On January 1, 2019, Monica Company acquired 70 percent of Young Company's outstanding common stock for $756,000. The fair value of the noncontrolling interest at the acquisition date was $324,000. Young reported stockholders' equity accounts on that date as follows Common stock-510 par value Additional paid in capital Retained earnings $ 300,000 40,000 600,000 In establishing the acquisition value, Monica appraised Young's assets and ascertained that the accounting Pecolds undervalueda building with a five yeat remaining life) by $60,000 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 20 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 Walning Transfer at Yerind cat transfer price) 2019 $ 29,000 2020 2025 100,000 37.00 YA PHIE 370.000 . 31.000 Help Save & Ext In addition Monica sold Young several pieces of fully depreciated equipment on January 1, 2020. for $55.000 The equipment had originally cost Monica 588,000 Young plans to depreciate these assets over a 5-year period In 2021 Young earns a net income of $170.000 and declares and pays 550.000 in cash dividends. These figures increase the subsidiary's Retained Earnings to a $930,000 balance at the end of 2021 Monica employs the equity method of accounting. Hence, it reports $115.160 investment income for 2021 with an investment account balance of $906 820 Prepare the worksheet entries required for the consolidation of Monica Company and young company fit no entry is required for a transaction/event, select "No Journal Entry Required in the first accoum.field) Consolidation Worksheet Entries 2 11 Prepare Entry Accounts Debi Credit