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On January 1, 2019, Monica Company acquired 70 percent of Young Company's outstanding common stock for $658,000. The fair value of the noncontrolling interest at the-acquisition date was $282,000 Young reperted stockholders equity accounts on that date as follows: In establishing the acquisition value; Monica appraised Young's assets and ascertained that the accountiag records undervalued a building (with a five-year remaining life) by \$40:000. Any iemaining excess acquisition-date fair value was allocated to a franchise agreement to be amortized over 10 years: During the subsequent years, Young sold Monisa niventoly at a 3@ percent grossiprofit rate. Monica=eonsistently resold this merchandise in the year of acquisition or in the periodimmediately following. Wansfers=for the three years after this business combination was created amounted to the following: In addition, Monica sold Young several pieces of fully depreciatedequipment on January 1,2020 for $41,000. The equipment had originally cost Monica $60,000. Young plans to depreciate these assets over a 5 -year period. In 2021, Young earns a net income of $190,000 and declares aind pays $50,000 in cash dividends. These figures increase the subsidiary's Retained Earnings to a $790,000 balance at the end of 2021 Monica employs the equity method of accounting: Hence, it repoits $127,340 investmentincome for 2021 with an Investment account balance of $821,770. Prepare the worksheet entries required for the-consolidation of Monica Company and Young Company. (If no On January 1, 2019, Monica Company acquired 70 percent of Young Company's outstanding common stock for $658,000. The fair value of the noncontrolling interest at the-acquisition date was $282,000 Young reperted stockholders equity accounts on that date as follows: In establishing the acquisition value; Monica appraised Young's assets and ascertained that the accountiag records undervalued a building (with a five-year remaining life) by \$40:000. Any iemaining excess acquisition-date fair value was allocated to a franchise agreement to be amortized over 10 years: During the subsequent years, Young sold Monisa niventoly at a 3@ percent grossiprofit rate. Monica=eonsistently resold this merchandise in the year of acquisition or in the periodimmediately following. Wansfers=for the three years after this business combination was created amounted to the following: In addition, Monica sold Young several pieces of fully depreciatedequipment on January 1,2020 for $41,000. The equipment had originally cost Monica $60,000. Young plans to depreciate these assets over a 5 -year period. In 2021, Young earns a net income of $190,000 and declares aind pays $50,000 in cash dividends. These figures increase the subsidiary's Retained Earnings to a $790,000 balance at the end of 2021 Monica employs the equity method of accounting: Hence, it repoits $127,340 investmentincome for 2021 with an Investment account balance of $821,770. Prepare the worksheet entries required for the-consolidation of Monica Company and Young Company. (If no

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