Use information to Prepare the worksheet adjustments for the December 31,2014, consolidation of Corgan and smashing

17. On January 1, 2014, Corgan Company acquired 80 percent of the outstanding voting stock of Smashing, Inc., for a total of S980,000 in cash and other consideration. At the acquisition date, Smashing had common stock of $700,000, retained earnings of $250,000, and a noncon- trolling interest fair value of $245,000. Corgan attributed the excess of fair value over Smash- ing's book value to various covenants with a 20-year remaining life. Corgan uses the equity method to account for its investment in Smashing. During the next two years, Smashing reported the following: Dividends Declared Inventory Purchases from Corgan Net Income $35,000 $100,000 $150,000 2014 2015 120,000 130,000 45,000 Corgan sells inventory to Smashing using a 60 percent markup on cost. At the end of 2014 and 2015, 40 percent of the current year purchases remain in Smashing's inventory