Public Corporation acquired $90$ percent of Station Company's voting common stock on January $1,201,$ for $$498,600.$

At the time of the combination, Station reported common stock outstanding of $$120,000$ and retained earnings of

$$384,000,$ and the fair value of the noncontrolling interest was $$55,400.$ The book value of Station's net assets

approximated market value except for patents that had a market value of $$50,000$ more than their book value. The

patents had a remaining economic life of five years at the date of the business combination. Station reported net

income of $$70,000$ and paid dividends of $$25,000$ during $201.$

Required:

a$.$ What balance did Public report as its investment in Station at December $31,20$X$1,$ assuming Public uses the equity

method in accounting for its investment?

Balance in investment account

b$.$ Prepare the consolidation entry or entries needed to prepare consolidated financial statements at December $31,$

$201.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.