On January $1,2023,$ Gomez Company acquired $90$ percent of Martin Company$$s outstanding stock for $$720,000.$ The $10$ percent noncontrolling interest had an assessed fair value of $$80,000$ on that date. Martin's acquisition$-$date book value consisted of $$300,000$ common stock and $$440,000$ retained earnings. Any acquisition$-$date excess fair value over book value was attributed to an unrecorded licensing agreement owned by Martin with an estimated remaining life of $12$ years. Gomez uses the equity method to account for its investment in Martin.

Also on January $1,2023,$ Martin acquired an $80$ percent interest in Short Company for $$344,000.$ At the acquisition date, the $20$ percent noncontrolling interest fair value was $$86,000.$ Short's acquisition$-$date book value consisted of $$200,000$ common stock and $$180,000$ retained earnings. Any excess fair value was attributed to a fully amortized copyright that had a remaining life of $5$ years. Martin uses the equity method to account for its investment in Short. Reported separate net income $($before inclusion of equity method income$)$ totals for $2023$ follow:

Martin Company $ $172,600$

Short Company $120,000$

The following are the $2024$ financial statements for these three companies $($credit balances indicated by parentheses$).$ Short has transferred inventory to Martin since the takeover amounting to $$70,000(2023)$ and $$80,000(2024).$ These transactions include the same markup applicable to Short$$s outside sales. In each year, Martin carried $20$ percent of this inventory into the succeeding year before disposing of it$.$ An effective tax rate of $21$ percent is applicable to all companies. All dividend declarations are paid in the same period.

Accounts Gomez Company Martin Company Short Company

Sales $ $(900,000)$ $ $(600,000)$ $ $(500,000)$

Cost of goods sold $480,000320,000250,000$

Operating expenses $100,000146,200150,000$

Equity income of Martin $(180,000)00$

Equity income of Short $0(71,200)0$

Net income $ $(500,000)$ $ $(205,000)$ $ $(100,000)$

Retained earnings, $1/1/24$ $ $(925,000)$ $ $(695,000)$ $ $(300,000)$

Net income $($above$)(500,000)(205,000)(100,000)$

Dividends declared $128,00000$

Retained earnings, $12/31/24$ $ $(1,297,000)$ $ $(900,000)$ $ $(400,000)$

Cash and receivables $ $120,000$ $ $95,000$ $ $88,000$

Inventory $118,000210,000120,000$

Investment in Martin Company $1,125,00000$

Investment in Short Company $0497,6000$

Land, buildings, and equipment $($net$)849,000736,000520,000$

Total assets $ $2,212,000$ $ $1,538,600$ $ $800,000$

Liabilities $ $(415,000)$ $ $(338,600)$ $ $(200,000)$

Common stock $(500,000)(300,000)(200,000)$

Retained earnings, $12/31/24(1,297,000)(900,000)(400,000)$

Total liabilities and equities $ $(2,212,000)$ $ $(1,538,600)$ $ $(800,000)$

Required:

a$1.$ Prepare schedules that show the calculations of the Investment in Short $12/31/24$ account balances.

a$2.$ Prepare schedules that show the calculations of the Investment in Martin $12/31/24$ account balances.

b$.$ Prepare the business combination$$s $2024$ consolidation worksheet; ignore income tax effects.

c$.$ Determine the amount of income tax for Gomez and Martin on a consolidated tax return for $2024.$

d$.$ Determine the amount of Short$$s income tax on a separate tax return for $2024.$

e$.$ Based on the answers to requirements $($c$)$ and $($d$),$ what journal entry does this combination make to record $2024$ income tax?