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On January $1,2021,$ Sledge had common stock of $$340,000$ and retained earnings of $$480,000.$ During that year, Sledge reported

sales of $$350,000,$ cost of goods sold of $$180,000,$ and operating expenses of $$62,000.$

On January $1,2019.$ Percy, Inc., acquired $70$ percent of Sledge's outstanding voting stock. At that date, $$82,000$ of the acquisition$-$date

fair value was assigned to unrecorded contracts $($with a $20-$year life$)$ and $$42,000$ to an undervalued building $($with a $10-$year remaining

life$).$

In $2020,$ Sledge sold inventory costing $$24,050$ to Percy for $$37,000.$ Of this merchandise, Percy continued to hold $$6,000$ at year$-$

end. During $2021,$ Sledge transferred inventory costing $$23,100$ to Percy for $$42,000.$ Percy still held half of these items at year$-$end.

On January $1,2020,$ Percy sold equipment to Sledge for $$23,000.$ This asset originally cost $$38,000$ but had a January $1,2020,$ book

value of $$13,400.$ 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 $2021.$

Complete this question by entering your answers in the tabs below.

Required $B$

Prepare worksheet entries to consolidate these two companies as of December $31,2021.($If no entry is required for a transaction$/$event$,$

select $"$No journal entry required" in the first account field.$\text{'}$

Consolidation

Worksheet Entries

Prepare Entry ${?}^{-G}$

Prepare Entry ${?}^{**}G$

PrePare Entry $*$TA

Prepare entry $s_{{?}_{?}}$

Prepare entry a

Prepare entry I

Prepare entry $E_{{?}_{?}}$

Prepare entry $T{I}_{{?}_{?}}$

Prepare entry g

Prepare etry ED

Complete this question by entering your answers in the tabs below.

Compute the net income attributable to the noncontrolling interest for $2021.$

Net income attributable to noncontrolling interest

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