| Question 1(of 3) On January 1, 2014, Corgan Company acquired 80 percent of the outstanding voting stock of Smashing Inc., for a total of $1,680,000 in cash and other consideration. At the acquisition date, Smashing had common stock of $930,000, retained eamings of $480,000, and a noncontrolling interest fair value of $420,000. Corgan attributed the excess of fair value over Smashing's book value to various covenants with a 20-year life. Corgan uses the equity method to account for its investment in Smashing During the next two years, Smashing reported the following Purchases from Net Inc 2014 $380,000 2015 360,000 $58,000 68,000 $330,000 350,000 Corgan sells inventory to Smashing using a 60 percent markup on cost. At the end of 2014 and 2015 40 percent of the current year purchases remain in Smashing's inventory a. Compute the equity method balance in Corgan's Investment in Smash ng Inc. account as of December 31, 2015 b. Prepare the worksheet adjustments for the Dec ember 31, 2015, consclidation of Corgan and Smashing of no entry is required for a transaction/event, select "No journal entry required" in the first account field.)