On January $1,2023,$ Pulaski, Incoeporated, acquired a $60$ percent interest in the common stack of Sheridan, incorporated, for $$384,600.$ Sheridan's book value on that date consisted of common stock of $$100,000$ and retained earnings of $$227,300.$ Also, the acquisition$-$date fair value of the $40$ percent noncontrolling interest was $$256,400.$ The subsidiary held patents $($with a $10-$year remaining life$)$ that were undervalued within the company's accourting recoeds by $$78,400$ and also had unpatented technology $(15$year estimated remaining life$)$ undervalued by $$54,300.$ Ary remaining excess acquisition$-$date fair value was assigned to an indefinite. lived trade name. Since acquisition, Pulaski has applied the equity method to its Investment in Sheridan account. At year$-$end, there are no intra$-$entity payables or receivables.

Intra$-$entity inventory sales between the two comparies have been made as follows:

$\backslash$table$[[,$Cost to$,$Transfer Price,$\backslash$table$[[$Ending Balance$],[($at transfer$]]],[$Year$,$Pulask$1,$to Sher$1$dan,price$)],[2823,$$$127,203,$$$159,000,$$$53,000],[2824,112,500,158,000,37,500]]$

The individual financlal statements for these two companies as of December $31,2024,$ and the year then ended follaw:

$\backslash$table$[[$Itens$,\backslash$table$[[$Pulask$1,],[$Incorporated$]],\backslash$table$[[$Sheridan$,],[$Incorporated$]]],[$Sales$,$$$($:$732,000\},5\{36],000\}],[$Cost of goods sold,$481,120,224,200],[$Operating expenses,$197,185,76,408],[$Equity in earnings in Sheridan,$\{34,189\},],[$Net incore,$$(87,904),$$$(66,4$DB$)],[$Retained earnings, $1/1/24,$$$\{\{774,6$ee$!,5\{2$B$2,$BED$)],[$Net incore,$(87,904\},\{66,403)],[$Dividends declared,$47,920,18,600],[$Retained earnings, $12/31/24,$$$\{$B$14,604\},$$$\{338,60$b$\}],[$Cash and receivables,$$277,423,$$$150,508],[$Inventory$,260,580,131,208],[$Investnent in Sheridan,$423,453,8],[$Buildings $($net$),33$B$,623,2$N$,308],[$Equipnent $($net$),241,323,89,100],[$Patents $($net$],0,23,600],[$Total assets,$$1,548,653,$$$599,708],[$L$1$ab$1$lities,$$\{426,049\},$$$\{\{169,10$D$\}],[$Connon stack,$\{32,$ e$$e$\},\{188,0$delB$\}],[$Retained earnings, $12/31/24,($B$14,604),(338,600)],[$Total liabilities and equities,$$11,540,6531,$$$\{599,70$B$\}]]$

Note: Parentheses indicate a credit balance.

Required:

a$.$ Show how Pulaski determined the $$423,453$ Imvestment in Sheridan account balance. Assume that Pulaskd defers $100$ percent of downstream intra$-$entity profits against its share of Sheridan's income.

b$.$ Prepare a consolidated worksheet to determine appropelate balances for external financlal reporting as of December $31,2024.$