On January $1,2023,$ Pulaski, Incorporated, acquired a $60$ percent interest in the common stock of Sheridan, Incorporated, for $$365,400.$ Sheridan's book value on that date consisted of common stock of $$100,000$ and retained earnings of $$216,100.$ Also, the acquisition$-$date fair value of the $40$ percent noncontrolling interest was $$243,600.$ The subsidiary held patents $($with a $10-$year remaining life$)$ that were undervalued within the company's accounting records by $$75,100$ and also had unpatented technology $(15-$year estimated remaining life$)$ undervalued by $$50,700.$ 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$$ $124,500$$ $155,625$$ $51,8752024113,100150,80037,700$

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

ItemsPulaski, IncorporatedSheridan, IncorporatedSales$ $(717,000)$$ $(356,000)$Cost of goods sold$471,200217,600$Operating expenses$193,44074,200$Equity in earnings in Sheridan$(32,936)0$Net income$ $(85,296)$$ $(64,200)$Retained earnings, $1/1/24$$ $(753,900)$$ $(281,400)$Net income$(85,296)(64,200)$Dividends declared$46,70016,900$Retained earnings, $12/31/24$$ $(792,496)$$ $(328,700)$Cash and receivables$ $269,800$$ $149,700$Inventory$253,400130,500$Investment in Sheridan$410,4670$Buildings $($net$)328,000203,800$Equipment $($net$)234,20087,400$Patents $($net$)022,000$Total assets$ $1,495,867$$ $593,400$Liabilities$ $(403,371)$$ $(164,700)$Common stock$(300,000)(100,000)$Retained earnings, $12/31/24(792,496)(328,700)$Total liabilities and equities$ $(1,495,867)$$ $(593,400)$

Note: Parentheses indicate a credit balance.

Required:

Show how Pulaski determined the $$410,467$ Investment in Sheridan account balance. Assume that Pulaski defers $100$ percent of downstream intra$-$entity profits against its share of Sheridan$$s income.

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