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:

Year Cost to Pulaski Transfer Price to Sheridan Ending 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:

Items Pulaski, Incorporated Sheridan, Incorporated Sales $ $(755,000)$ $ $(395,000)$ 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 $31,2024.$