$$ On January $1,2023,$ PondBlue Company purchased $80$ percent of the outstanding voting stock of SweetWater, Inc., for $$1,000,000$ in cash and other consideration. NCI acquisition date fair value is $$250,000.$ At the purchase date, SweetWater had common stock of $$500,000$ and retained earnings of $$185,000.$ PondBlue attributed the excess of acquisition$-$date fair value over Stillwater's book value to a trade name with an estimated $25-$year remaining useful life. PondBlue uses the equity method to account for its investment in SweetWater.

During the next two years, SweetWater reported the following:

Year $-2023,$ Income $-$ $$78,000,$ Dividends Declared $-$ $$25,000,$ Inventory Transfers to PondBlue at Transfer Price $-$ $$190,000$

Year $-2024,$ Income $-$ $$$85,000,$ Dividends Declared $-$ $$27,000,$ Inventory Transfers to PondBlue at Transfer Price $-$ $$210,000$

SweetWater sells inventory to PondBlue after a markup based on a gross profit rate $($use a $60$ percent gross profit rate on all inventory transfers$).$ At the end of $2023$ and $2024,30$ percent of the current$-$year purchases remain in PondBlue's inventory.

Required

Create an Excel spreadsheet that computes the following:

$1.$ Equity method balance in PondBlue's Investment in SweetWater, Inc., account as of December $31,2024.$

$2.$ Worksheet adjustments for the December $31,2024,$ consolidation of PondBlue and SweetWater.

$3.$ Show the calculation for Net Income attributable to NCI

Formulate your solution so that SweetWater's gross profit rate on sales to James is treated as a variable.