On January $1,2024,$ Sledge had common stock of $$300,000$ and retained earnings of $$440,000.$ During that year, Sledge reported sales of $$310,000,$ cost of goods sold of $$160,000,$ and operating expenses of $$58,000.$

On January $1,2022,$ Percy, Incorporated, acquired $90$ percent of Sledge's outstanding voting stock. At that date, $$78,000$ of the acquisition$-$date fair value was assigned to unrecorded contracts $($with a $20-$year life$)$ and $$38,000$ to an undervalued building $($with a $10-$year remaining life$).$

In $2023,$ Sledge sold inventory costing $$19,800$ to Percy for $$33,000.$ Of this merchandise, Percy continued to hold $$7,000$ at year$-$end. During $2024,$ Sledge transferred inventory costing $$19,000$ to Percy for $$38,000.$ Percy still held half of these items at year$-$end.

On January $1,2023,$ Percy sold equipment to Sledge for $$21,000.$ This asset originally cost $$34,000$ but had a January $1,2023,$ book value of $$12,600.$ 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:

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

Compute the net income attributable to the noncontrolling interest for $2024.$

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

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

No Transaction Accounts Debit Credit

$1*$G Retained earnings $2,800$

Cost of goods sold $2,800$

$2*$TA Equipment $13,000$

Investment in Sledge $6,720$

Accumulated depreciation$$Equipment $19,720$

$3$ S Common stock $300,000$

Retained earnings $?$

Investment in Sledge $?$

Noncontrolling interest in Sledge $?$

$4$ A Contracts $70,200$

Buildings $30,400$

Investment in Sledge $?$

Noncontrolling interest in Sledge $?$

$5$ I Equity in income of Sledge $71,520$

Investment in Sledge $71,520$

$6$ E Amortization expense $3,900$

Depreciation expense $3,800$

Contracts $3,900$

Buildings $3,800$

$7$ TI Sales $38,000$

Cost of goods sold $38,000$

$8$ G Cost of goods sold $9,500$

Inventory $9,500$

$9$ ED Accumulated depreciation$$Equipment $1,680$

Depreciation expense $1,680$