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. 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. $NCl$ acquisition date fair value is $$250,000.$ Use a $60$ percent gross profit rate on all inventory

transfers. Use a $60$ percent gross profit rate on all inventory transfers. Show the calculation for Net Income attributable to NCI

SweetWater sells inventory to PondBlue after a markup based on a gross profit rate. At the end of $2023$ and $2024,30$ percent of the current$-$year purchases

remain in PondBlue's inventory.

Create an Excel spreadsheet that computes the following

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

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

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