On January $1,2023,$ Pulaski, Incorporated, acquired a $60$ percent interest in the common stock of Sheridan, Incorporated, for $$391,800.$ Sheridan's book value on that date consisted of common stock of $$100,000$ and retained earnings of $$231,600.$ Also, the acquisition$-$date fair value of the $40$ percent noncontrolling interest was $$261,200.$ The subsidiary held patents $($with a $10-$year remaining life$)$ that were undervalued within the company's accounting records by $$85,600$ and also had unpatented technology $(15-$year estimated remaining life$)$ undervalued by $$61,800.$ Any 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 companies have been made as follows:

YearCost to PulaskiTransfer Price to SheridanEnding Balance $($at transfer price$)2023$$ $137,100$$ $171,375$$ $57,1252024113,400151,20037,800$

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

ItemsPulaski, IncorporatedSheridan, IncorporatedSales$ $(755,000)$$ $(395,000)$Cost of goods sold$496,200241,000$Operating expenses$201,45582,000$Equity in earnings in Sheridan$(37,567)0$Net income$ $(94,912)$$ $(72,000)$Retained earnings, $1/1/24$$ $(824,900)$$ $(285,700)$Net income$(94,912)(72,000)$Dividends declared$50,80020,800$Retained earnings, $12/31/24$$ $(869,012)$$ $(336,900)$Cash and receivables$ $295,500$$ $153,400$Inventory$277,600133,600$Investment in Sheridan$430,3140$Buildings $($net$)364,000208,000$Equipment $($net$)259,70091,500$Patents $($net$)026,400$Total assets$ $1,627,114$$ $612,900$Liabilities$ $(458,102)$$ $(176,000)$Common stock$(300,000)(100,000)$Retained earnings, $12/31/24(869,012)(336,900)$Total liabilities and equities$ $(1,627,114)$$ $(612,900)$

Note: Parentheses indicate a credit balance.

Required:

Show how Pulaski determined the $$430,314$ Investment in Sheridan account balance. Assume that Pulaski defers $100$ percent of downstream intra$-$entity profits against its share of Sheridan$$s income.

Prepare a consolidated worksheet to determine appropriate balances for external financial reporting as of December $31,2024.$