Skip to main content Ch $05$ Homework AnswerSaved Help opens in a new windowSave & ExitSubmit Check my work mode $.$: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Item$810$points Return to question Item $8$ On January $1,2022,$ Monica Company acquired $80$ percent of Young Company$$s outstanding common stock for $$792,000.$ The fair value of the noncontrolling interest at the acquisition date was $$198,000.$ Young reported stockholders$$ equity accounts on that date as follows: Common stock$$$$10$ par value$ $200,000$Additional paid$-$in capital$90,000$Retained earnings$510,000$ In establishing the acquisition value, Monica appraised Young's assets and ascertained that the accounting records undervalued a building $($with a five$-$year remaining life$)$ by $$90,000.$ Any remaining excess acquisition$-$date fair value was allocated to a franchise agreement to be amortized over $10$ years. During the subsequent years, Young sold Monica inventory at a $20$ percent gross profit rate. Monica consistently resold this merchandise in the year of acquisition or in the period immediately following. Transfers for the three years after this business combination was created amounted to the following: YearTransfer PriceInventory Remaining at Year$-$End $($at transfer price$)2022$$ $50,000$$ $20,000202370,00022,000202480,00028,000$ In addition, Monica sold Young several pieces of fully depreciated equipment on January $1,2023,$ for $$46,000.$ The equipment had originally cost Monica $$70,000.$ Young plans to depreciate these assets over a five$-$year period. In $2024,$ Young earns a net income of $$240,000$ and declares and pays $$75,000$ in cash dividends. These figures increase the subsidiary's Retained Earnings to a $$840,000$ balance at the end of $2024.$ During this same year, Monica reported dividend income of $$60,000$ and an investment account containing the initial value balance of $$792,000.$ No changes in Young's common stock accounts have occurred since Monica's acquisition $.$ Required: Prepare the $2024$ consolidation worksheet entries for Monica and Young. Compute the net income attributable to the noncontrolling interest for $2024.$ Prepare the $2024$ consolidation worksheet entries for Monica and Young.

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

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline No & Transaction & & & Deblt & Credit $\backslash \backslash$

$\backslash$hline $1$ & $\backslash (\{\}^\{\backslash$text $\{\text{'}$G $\}\}\backslash )$ & Retained earnings, $1/1/24($Yaung$)$ & $\backslash (\backslash$bigcirc $\backslash )$ & $4,400$ & $\backslash \backslash$

$\backslash$hline & & Cast of goods sold & $\backslash (\backslash$bigcirc $\backslash )$ & & $4,400\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline $2$ & $*$TA & Retained earnings, $1/1/24($Monica$)$ & $()$ & $36,800$ & $\backslash \backslash$

$\backslash$hline & & Equipment & $0$ & $24,000$ & $\backslash \backslash$

$\backslash$hline & & Accurnulated depreciation$-$Equipment & $\backslash (\backslash$bigcirc $\backslash )$ & & $\backslash (60,800\backslash \%\backslash )\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline $3$ & $\backslash (\{\}^\{\backslash$circ$\}\backslash$mathrm$\{$C$\}\backslash )$ & Irvestment in Young & $()$ & $792,000\backslash (\backslash$times $\backslash )$ & $\backslash \backslash$

$\backslash$hline & & Retained earnings, $1/1/24($Monica$)$ & $\backslash (\backslash$bigcirc $\backslash )$ & & $792,000\backslash \%\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline $4$ & S & Common stack $-$ Young & $\backslash (\backslash$bigcirc $\backslash )$ & $200,000$ & $\backslash \backslash$

$\backslash$hline & & Additional paid$-$in capital $-$ Young & $\backslash (\backslash$bigcirc $\backslash )$ & $90,000\backslash (\backslash$geqslant $\backslash )$ & $\backslash \backslash$

$\backslash$hline & & Retained earnings, $1/1/24($Yaung$)$ & $0$ & & $\backslash \backslash$

$\backslash$hline & & Irvestment in Young & $\backslash (\backslash$bigcirc $\backslash )$ & & $\backslash \backslash$

$\backslash$hline & & Noncontrolling interest in Young & $\backslash (\backslash$bigcirc $\backslash )$ & & $\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline $5$ & A & Franchise agreement & $\backslash (\backslash$bigcirc $\backslash )$ & & $\backslash \backslash$

$\backslash$hline & & Buildings & $\backslash (\backslash$bigcirc $\backslash )$ & & $\backslash \backslash$

$\backslash$hline & & Irvestment in Young & $\backslash (\backslash$bigcirc $\backslash )$ & & $\backslash \backslash$

$\backslash$hline & & Noncontrolling interest in Young & $\backslash (\backslash$bigcirc $\backslash )$ & & $\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline $6$ & $1$ & Dividend income & $\backslash (\backslash$bigcirc $\backslash )$ & $60,000$ & $\backslash \backslash$

$\backslash$hline & & Dividends declared & $\backslash (\backslash$bigcirc $\backslash )$ & & $\backslash (60,000\backslash \%\backslash )\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline $7$ & E & Depreciation expense & $0$ & $18,000$ & $\backslash \backslash$

$\backslash$hline & & Amortization expense & $\backslash (\backslash$bigcirc $\backslash )$ & $10,000$ & $\backslash \backslash$

$\backslash$hline & & Franchise agreement & $\backslash (\backslash$bigcirc $\backslash )$ & & $10,000\backslash \backslash$

$\backslash$hline & & Buildings & $\backslash (\backslash$bigcirc $\backslash )$ & & $\backslash (18,000\backslash \%\backslash )\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline $8$ & TI & Sales & $\backslash (\backslash$bigcirc $\backslash )$ & $80,000$ & $\backslash \backslash$

$\backslash$hline & & Cost of goods sold & $\backslash (\backslash$bigcirc $\backslash )$ & & $\backslash (80,000\backslash \%\backslash )\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline $9$ & G & Cost of goods sald & $\backslash (\backslash$bigcirc $\backslash )$ & $5,600$ & $\backslash \backslash$

$\backslash$hline & & Inventary & $\backslash (\backslash$bigcirc $\backslash )$ & & $5,6000\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline $10$ & ED & Accumulated depreciation$-$Equipment & $\backslash (\backslash$bigcirc $\backslash )$ & $\backslash (9,200\backslash \%\backslash )$ & $\backslash \backslash$

$\backslash$hline & & Depreciation expense & $\backslash (\backslash$theta $\backslash )$ & & $9,200\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$