Public Corporation acquired $90$ percent of Station Company's voting common stock on January $1,201,$ for $$486,000.$ At the time of the combination, Station reported common stock outstanding of $$120,000$ and retained earnings of $$380,000,$ and the fair value of the noncontrolling interest was $$54,000.$ The book value of Station's net assets approximated market value except for patents that had a market value of $$40,000$ more than their book value. The patents had a remaining economic life of five years at the date of the business combination. Station reported net income of $$60,000$ and paid dividends of $$20,000$ during $201.$

Required:

a$.$ What balance did Public report as its investment in Station at December $31,201,$ assuming Public uses the equity method in accounting for its investment?

Balance in investment account

$

$514,800$

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.

Consolidation Worksheet Entries

A

B

Record the amortized excess value reclassification entry.

Note: Enter debits before credits.

$\backslash$table$[[$Event$,$Accounts,Debit,Credit$],[2,$Amortization expense,$8,000,],[,$Patents,,$8,000]]$Z