****Someone already answered this question in Chegg, but I don't understand three of the answers. If you could please help me to understand how they arrived at:

Excess Fair Value of Amortization of (7,104)

2017 Ending inventory profits Def Profit Deferral (10,850)

Stinson 2018 Dividends paid to Mcillroy (11,640)

Thank you!

On January 1, 2020, McIlroy, Inc., acquired a 60 percent interest in the common stock of Stinson, Inc., for $378,000. Stinson's book value on that date consisted of common stock of $100,000 and retained earnings of $223,400. Also, the acquisition-date fair value of the 40 percent noncontrolling interest was $252,000. The subsidiary held patents (with a 10-year remaining life) that were undervalued within the company's accounting records by $80,800 and an unrecorded customer list (15-year remaining life) assessed at a $56,400 fair value. Any remaining excess acquisition-date fair value was assigned to goodwill. Since acquisition, McIlroy has applied the equity method to its Investment in Stinson account and no goodwill impairment has occurred. At year-end, there are no intra-entity payables or receivables.

Intra-entity inventory sales between the two companies have been made as follows:

Year	Cost to McIlroy	Transfer Price to Stinson	Ending Balance (at transfer price)
2020	$130,200	$162,750	$54,250
2021	112,500	150,000	37,500

The individual financial statements for these two companies as of December 31, 2021, and the year then ended follow:

	McIlroy, Inc.				Stinson, Inc.
Sales	$	(740,000	)		$	(374,000	)
Cost of goods sold		486,300				228,400
Operating expenses		199,215				77,800
Equity in earnings in Stinson		(35,051	)			0
Net income	$	(89,536	)		$	(67,800	)
Retained earnings, 1/1/21	$	(791,100	)		$	(283,700	)
Net income		(89,536	)			(67,800	)
Dividends declared		48,800				19,400
Retained earnings, 12/31/21	$	(831,836	)		$	(332,100	)
Cash and receivables	$	283,400			$	151,200
Inventory		266,200				131,800
Investment in Stinson		419,637				0
Buildings (net)		346,000				206,100
Equipment (net)		247,000				89,900
Patents (net)		0				24,500
Total assets	$	1,562,237			$	603,500
Liabilities	$	(430,401	)		$	(171,400	)
Common stock		(300,000	)			(100,000	)
Retained earnings, 12/31/21		(831,836	)			(332,100	)
Total liabilities and equities	$	(1,562,237	)		$	(603,500	)

1. Show how McIlroy determined the $419,637 Investment in Stinson account balance. Assume that McIlroy defers 100 percent of downstream intra-entity profits against its share of Stinsons income.