$On$ January $1,2020,$ Mcllroy, Inc., acquired $a60$ percent interest $in$ the common stock $of$ Stinson, Inc., for $$351,600.$ Stinson's book value $on$ that date consisted $of$ common stock $of$ $$100,000$ and retained earnings $of$ $$207,900.$ Also, the acquisition$-$date fair value $of$ the $40$ percent noncontrolling interest was $$234,400.$ The subsidiary held patents $(witha10-$year remaining life$)$ that were undervalued within the company's accounting records $by$ $$88,600$$$405,198$ 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 $asof$ December $31,2021.$ Complete this question $by$ entering your answers $in$ the $tabs$ below.

Show how McIlroy determined the $$405,198$ Investment $in$ Stinson account balance. Assume that McIlroy defers $100$ percent

$of$ downstream intra$-$entity profits against its share $of$ Stinson's income. $(Amountstobe$ deducted should $be$ indicated with $a$

minus sign.$)$ Prepare a consolidated worksheet $to$ determine appropriate balances for external financial reporting $asof$ December $31,2021.(For$ accounts where

multiple consolidation entries are required, combine all debit entries into one amount and enter this amount $in$ the debit column $of$ the worksheet.

Similarly, combine all credit entries into one amount and enter this amount $in$ the credit column $of$ the worksheet. Input all amounts $as$ positive values.$)$

MCILROY, INC., AND STINSON, INC.

Consolidation Worksheet