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Check my w On January 1, 2020, Mcllroy, Inc, acquired a 60 percent interest in the common stock of Stinson, Inc., for $325,200. Stinson's book value on that date consisted of common stock of $100,000 and retained earnings of $192,300. Also, the acquisition date fair value of the 40 percent noncontrolling interest was $216,800. The subsidiary held patents (with a 10-year remaining life) that were undervalued within the company's accounting records by $74,200 and an unrecorded customer list (15-year remaining life) assessed at a $50,100 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 McIlroy to Stinson (at transfer price) 2020 $124,200 $155,250 $51.750 2021 112,800 150, 480 37,600 The individual financial statements for these two companies as of December 31, 2021, and the year then ended follow: Stinson, Inc. $ (353,000) 215,000 73,600 Sales Cost of goods sold Operating expenses Equity in earnings in Stinson Net income Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Cash and receivables Inventory Investment in Stinson Buildings (net) Equipment (net) Patents (net) Total assets Liabilities Common stock Retained earnings, 12/31/21 Total liabilities and equities McIlroy, Inc. $(715,000) 469,900 193,210 (32,654) $(84,544) $ (754,700) (84,544) 46,500 5 (792,744) $ 270,200 253,800 384,548 325,000 232, 100 $ (63,600) $(281,300) (63,600) 16,500 $ (328,400) $ 149,600 130,400 $ 1,465,648 $(372,904) (300,000) (792,744) $(1,465,648) 203,600 87,000 21,700 $ 592,300 $ (163,900) (100,000) (328,400) $ (592,300) >11,465,648) 1592,500) Total liabilities and equities (Note: Parentheses indicate a credit balance.) a. Show how Mcllroy determined the $384,548 Investment in Stinson account balance. Assume that Mcllroy defers 100 percent of downstream intra-entity profits against its share of Stinson's income. b. Prepare a consolidated worksheet to determine appropriate balances for external financial reporting as of December 31, 2021. Complete this question by entering your answers in the tabs below. Required A Required B Show how Mcllroy determined the $384,548 Investment in Stinson account balance. Assume that Mcllroy defers 100 percent of downstream intra-entity profits against its share of Stinson's income. (Amounts to be deducted should be indicated with a minus sign.) 0 Required > Accounts Mcllroy Stinson Debit Credit NCI Consolidated Totals $ (715.000) $ 469,900 193.210 (32,654) (84,544) (353,000) 215,800 73,600 0 (63,600) $ $ Sales Cost of goods sold Operating expenses Equity in earnings of Stinson Separate company net income Consolidated net income To noncontrolling interest To Mcllroy, Inc Retained earnings 1/1/21 Net Income Dividends declared Retained earnings 12/31/21 Cash and receivables Inventory Investment in Stinson Buildings (net) Equipment (net) Patents (net) Customer list Goodwill Total assets Liabilities Common stock Noncontrolling interest 1/1/21 Noncontrolling interest 12/31/21 Retained earings 12/31/21 Total liabilities and equities (754,700) (84,544) 46,500 (792,744) $ 270,200 $ 253,800 384,548 325,000 232,100 0 (281,300) (63,600) 16,500 (328,400) 149,600 130,400 0 203,600 87,000 21,700 $ 1.465,648 $ (372,904) (300,000) 592,300 (163,900) (100,000) (792,744) $ (1,465,648) 5 (328,400) (592,300) $ 0 $ 0

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