On January 1, 2021, Sledge had common stock of $140,000 and retained earnings of $280,000. During that year, Sledge reported sales of $150,000, cost of goods sold of $80,000, and operating expenses of $42,000. On January 1, 2019, Percy, Inc., acquired 80 percent of Sledge's outstanding voting stock. At that date, $62,000 of the acquisition-date fair value was assigned to unrecorded contracts (with a 20-year life) and $22,000 to an undervalued building (with a 10-year remaining life). In 2020, Sledge sold inventory costing $11,050 to Percy for $17,000. Of this merchandise, Percy continued to hold $7,000 at year-end. During 2021, Sledge transferred inventory costing $12,100 to Percy for $22,000. Percy still held half of these items at year-end. On January 1, 2020, Percy sold equipment to Sledge for $13,000. This asset originally cost $18,000 but had a January 1, 2020, book value of $9,400. At the time of transfer, the equipment's remaining life was estimated to be five years. Percy has properly applied the equity method to the investment in Sledge. a. Prepare worksheet entries to consolidate these two companies as of December 31, 2021. b. Compute the net income attributable to the noncontrolling interest for 2021. No Transaction Accounts Debit Credit 1 1 2,450 Retained earnings Cost of goods sold 2,450 2 2. 5,000 Equipment Investment in Sledge Accumulated depreciation-Equipment 2,880 7,880 3 3 Common stock 140,000 277,550 Retained earnings Investment in Sledge Noncontrolling interest in Sledge 334,040 83,510 4 4 55,800 17,600 Contracts Buildings Investment in Sledge Noncontrolling interest in Sledge 58,720 14,680 5 5 Equity in income of Sledge Investment in Sledge 6 6 2,200 3,100 Depreciation expense Amortization expense Contracts Buildings 3,100 2,200 7 7 Sales 22,000 Cost of goods sold 22,000 8 8 4,950 Cost of goods sold Inventory 4,950 9 9 720 Accumulated depreciation-Equipment Depreciation expense 720 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Compute the net income attributable to the noncontrolling interest for 2021. Net income attributable to noncontrolling interest $ 4,240 x