THIS FORMAT PLEASE!!!!!

On January 1, 2020, McIlroy, Inc., acquired a 60 percent interest in the common stock of Stinson, Inc., for $392,400. Stinson's book value on that date consisted of common stock of $100,000 and retained earnings of $231,900. Also, the acquisition-date fair value of the 40 percent noncontrolling interest was $261,600. The subsidiary held patents (with a 10-year remaining life) that were undervalued within the company's accounting records by $81,700 and an unrecorded customer list (15-year remaining life) assessed at a $57,000 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	$130,800	$163,500	$54,500
2021	113,400	151,200	37,800

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

	McIlroy, Inc.				Stinson, Inc.
Sales	$	(741,000	)		$	(377,000	)
Cost of goods sold		487,000				230,200
Operating expenses		199,020				78,400
Equity in earnings in Stinson		(35,308	)			0
Net income	$	(90,288	)		$	(68,400	)
Retained earnings, 1/1/21	$	(792,000	)		$	(283,800	)
Net income		(90,288	)			(68,400	)
Dividends declared		49,100				19,600
Retained earnings, 12/31/21	$	(833,188	)		$	(332,600	)
Cash and receivables	$	283,600			$	151,400
Inventory		266,400				132,000
Investment in Stinson		429,006				0
Buildings (net)		347,000				206,500
Equipment (net)		247,700				90,100
Patents (net)		0				24,800
Total assets	$	1,573,706			$	604,800
Liabilities	$	(440,518	)		$	(172,200	)
Common stock		(300,000	)			(100,000	)
Retained earnings, 12/31/21		(833,188	)			(332,600	)
Total liabilities and equities	$	(1,573,706	)		$	(604,800	)

(Note: Parentheses indicate a credit balance.)

Show how McIlroy determined the $429,006 Investment in Stinson account balance. Assume that McIlroy defers 100 percent of downstream intra-entity profits against its share of Stinsons income.

Prepare a consolidated worksheet to determine appropriate balances for external financial reporting as of December 31, 2021.

A. Show how McIlroy determined the $429,006 Investment in Stinson account balance. Assume that McIlroy defers 100 percent of downstream intra-entity profits against its share of Stinsons income.

B. Prepare a consolidated worksheet to determine appropriate balances for external financial reporting as of December 31, 2021.