On January $1,2024,$ Sledge had common stock of $$200,000$ and retained earnings of $$340,000.$ During that year, Sledge reported sales of $$210,000,$ cost of goods sold of $$110,000,$ and operating expenses of $$48,000.$

On January $1,2022,$ Percy, Incorporated, acquired $80$ percent of Sledge's outstanding voting stock. At that date, $$68,000$ of the acquisition$-$date fair value was assigned to unrecorded contracts $($with a $20-$year life$)$ and $$28,000$ to an undervalued building $($with a $10-$year remaining life$).$

In $2023,$ Sledge sold inventory costing $$13,800$ to Percy for $$23,000.$ Of this merchandise, Percy continued to hold $$8,000$ at year$-$end. During $2024,$ Sledge transferred inventory costing $$16,800$ to Percy for $$28,000.$ Percy still held half of these items at year$-$end.

On January $1,2023,$ Percy sold equipment to Sledge for $$16,000.$ This asset originally cost $$24,000$ but had a January $1,2023,$ book value of $$10,600.$ At the time of transfer, the equipment's remaining life was estimated to be five years.

Percy has properly applied the equity method to the investment in Sledge.

Required:

a$.$Prepare worksheet entries to consolidate these two companies as of December $31,2024.$

Compute the net income attributable to the noncontrolling interest for $2024.$Cost of Goods Sold

Inventory

Net Income Attributable to Noncontrolling Interest

References

b$.$ Assume that Seacraft sells inventory to Protrade at a markup equal

to $60$ percent of cost$.$ Intra$-$entity transfers were $$63,000$ in $2023$

and $$93,000$ in $2024.$ Of this inventory, $$34,000$ of the $2023$

transfers were retained and then sold by Protrade in $2024,$ whereas

$$48,000$ of the $2024$ transfers were held until $2025.$

Determine balances for the following items that would appear on

consolidated financial statements for $2024$ :

Cost of Goods Sold

Inventory

Net Income Attributable to Noncontrolling Interest

c$.$ Protrade sells Seacraft a building on January $1,2023,$ for $$106,000,$

although its book value was only $$63,000$ on this date. The building

had a five$-$year remaining life and was to be depreciated using the

straight$-$line method with no salvage value.

Determine balances for the following items that would appear on

consolidated financial statements for $2024$ :

Buildings $($net$)$

Operating Expenses

Net Income Attributable to Noncontrolling Interest