On January $1,2023,$ Pulaski, Incorporated, acquired a $60$ percent interest in the common stock of Sheridan, Incorporated, for The individual financial statements for these two companies as of December $31,2024,$ and the year then ended follow:

Note: Parentheses indicate a credit balance.

Required:

a$.$ Show how Pulaski determined the $$423,453$ Investment in Sheridan account balance. Assume that Pulaski defers $100$ percent of

downstream intra$-$entity profits against its share of Sheridan's income.

b$.$ Prepare a consolidated worksheet to determine appropriate balances for external financial reportina as of December $31,2024.$ Required $A$

Show how Pulaski determined the $$423,453$ Investment in Sheridan account balance. Assume that Pulaski defers $100$ percent

of downstream intra$-$entity profits against its share of Sheridan's income.

Note: Amounts to be deducted should be indicated with a minus sign.$\backslash$table$[[$Cash and receivables,$$,277,400,$$$,150,500,,,,],[$Inventory$,,260,500,,131,200,,,,],[$Investment in Sheridan,,$423,453,,0,,,,],[$Buildings $($net$),,338,000,,205,300,,,,],[$Equipment $($net$),,241,300,,89,100,,,,],[$Patents $($net$),,0,,23,600,,,,],[$Unpatented technology$],[$Trade name$],[$Total assets,$$,,$$$,599,700,,,,],[$Liabilities$,,(426,049),,(169,100),,,,],[$Common stock,,$(300,000),,(100,000),100,000,,,],[$Noncontrolling interest $1/1/24],[$Noncontrolling interest $12/31/24],[$Retained earnings $12/31/24,,(814,604),,(330,600),,,,],[$Total liabilities and equities,$$,(1,540,653),$$$,(599,700),100,000,$$$,,]]$

$$384,600.$ Sheridan's book value on that date consisted of common stock of $$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 accounting records by $$78,400$ and also had unpatented technology $(15-$

year estimated remaining life$)$ undervalued by $$54,300.$ 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: