uestion #6 (50 points) On January 1, 2017, Mcllroy, Inc., acquired a 60 percent interest in the common stock of Stinson Inc., for $313,800. Stinson's book value on that date consisted of common stock of $100,000 and retained earnings of $185,500. Also, the acquisition-date fair value of the 40 percent noncontrolling interest was $209,200. The subsidiary held patents (with a 10-year remaining life) that were undervalued within the company's accounting records by $76,300 and an unrecorded customer list (15-year remaining life) assessed at a $52,200 fair value. Any remaining excess acquisition-date fair value was assigned to goodwill. Since acquisition, Mcllroy 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: Transfer Price Ending Balance Year Cost to Mcllroy to Stinson (at transfer price) 2017 $126,000 $157,500 2018 112,800 150,400 $52,500 37,600 The individual financial statements for these two companies as of December 31, 2018, and the year then ended follow Sales Cost of goods sold Operating expenses Equity in earnings in Stinson Mcllroy, Inc. S (723,000) 475,200 195,410 33,194 Stinson, Inc. S (358,000) 218,800 74,600 Net income S (85,584) Retained earnings, 1/1/18 Net income Dividends declared S (64,600) S (282.000) (64,600) 17,600 S (768,000) $ (85,584) 47,400 1906 184 Retained earnings, 12131/18 (329,000) Cash and receivables Inventory Investment in Stinson Buildings (net) Equipment (net) Patents (net) 275,000 258,300 377,168 333,000 237,800 S 149,800 130,600 204,300 88,000 22,400 5 1,481,268 s 595 100 S (166,100) (100,000) (806,184)(329,000) S (595,100) Total assets Liabilities Common stock Retained earnings, 12/31/18 S (375,084) (300,000) Total liabilities and equities S (1,481,268) Required: Prepare a consolidated worksheet to determine appropriate balances for external financial reporting as of December 31, 2018 a