The individual financial statements for Patterson Company and Shapiro Company for the year ending December 31, 2022, follow. Patterson acquired a 60 percent interest in Shapiro on January 1, 2019, in exchange for various considerations totaling $570,000. At the acquisition date, the fair value of the noncontrolling interest was $380,000 and Shapiro's book value was $730,000. Shapiro had developed internally a customer list that was not recorded on its books but had an acquisition-date fair value of $220,000. This intangible asset is being amortized over 20 years. Patterson uses the equity method to maintain its Investment in Shapiro account. Shapiro regularly transfers inventory to Patterson. In 2021, it shipped inventory costing $100,000 to Patterson at a price of $150,000. During 2022, intra-entity shipments totaled $200,000, although the original cost to Shapiro was only $140,000. In each of these years, 30 percent of the merchandise was not resold to outside parties until the period following the transfer. Patterson owed Shapiro $40,000 at the end of 2022 (i.e., intra-entity payables) Credit balances are in parentheses. Required: 1. 2. 3. (10 points) Show how Patterson determined its Investment in Shapiro account as of December 31, 2022. The balance of this account as of January 1, 2022 was $694,200. Prepare a t-account and show postings to the account during 2022. (36 points) Complete the provided worksheet (in Excel) to consolidate the separate 2022 financial statements of Patterson and Shapiro and do the following: Prepare consolidation entries (Hint: There are nine consolidation entries.) Determine net income to the NCI and Patterson Determine the ending balance of the NCI account Determine consolidation totals (4 points) What would be the ending balance of Investment in Shapiro as of December 31, 2022 if the inventory transfers were downstream (from Patterson to Shapiro) and the beginning balance of Investment in Shapiro were $694,200?