On January 1, 2022, Allan Company acquired 80 percent of Bond Company. Of Bond’s total business fair value, $125,000 was allocated to copyrights with a 20-year remaining life. Subsequently, on January 1, 2023, Bond obtained 70 percent of Cole Company’s outstanding voting shares. In this second acquisition, $120,000 of Omega’s total business fair value was assigned to copyrights that had a remaining life of 12 years. Bond’s book value was $490,000 on January 1, 2022, and Cole reported a book value of $140,000 on January 1, 2023.

Bond has made numerous inventory transfers to Allan since the business combination was formed. Intra-entity gross profits of $15,000 were present in Allan’s inventory as of January 1, 2024. During the year, $200,000 in additional intra-entity sales were made with $22,000 in intra-entity gross profits in inventory remaining at the end of the period. 

Both Allan and Bond utilized the equity method to account for their investment balances.

Following are the individual financial statements for the companies for 2024 with consolidated totals (credit balances indicated by parentheses). Develop the worksheet entries necessary to derive these reported balances:

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Sales Cost of goods sold Operating expenses. Equity earnings of subsidiary Net income. Consolidated net income Net income attributable to noncontrolling interest (Bond Company).... Net income attributable to noncontrolling interest (Cole Company) Net income attributable to Allan Company Retained earnings, 1/1/24. Net income (above) Dividends declared. Retained earnings, 12/31/24 Allan Company $ (900,000) 500,000 294,000 (127,800) $(233,800) $ (572,400) (233,800) 50,000 $ (756,200) Bond Company $ (500,000) 240,000 129,000 (42,000) $ (173,000) $ (393,000) (173,000) 40,000 $ (526,000) Cole Company $(200,000) 80,000 50,000 -0- $ (70,000) $(100,000) (70,000) 50,000 $(120,000) Consolidated Totals $(1,400,000) 627,000 489,250 -0- $ (283,750) 31,950 18,000 $ (233,800) $ (572,400) (233,800) 50,000 $ (756,200)