Week 5: Homework i Saved Help Save & Exit Submit Check my work 6 On January 1, 2019, Monica Company acquired 80 percent of Young Company's outstanding common stock for $760,000. The fair value of the noncontrolling Interest at the acquisition date was $190,000. Young reported stockholders' equity accounts on that date as follows: 10 points Common stock-$10 par value $ 206, 080 Additional paid-in capital 50, 080 Retained earnings 470, 080 eBook 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 $50,000. Any remaining excess acquisition-date fair Print value was allocated to a franchise agreement to be amortized over 10 years. During the subsequent years, Young sold Monica Inventory at a 40 percent gross profit rate. Monica consistently resold this merchandise In the year of acquisition or In the perlod Immediately following. Transfers for the three References years after this business combination was created amounted to the following: Inventory Remaining Transfer at Year-End Year Price (at transfer price) 2019 $ 80, 600 $ 16,080 2020 100, 068 18,080 2021 110, 060 24,080 In addition, Monica sold Young several pleces of fully depreciated equipment on January 1, 2020, for $42,000. The equipment had originally cost Monica $62,000. Young plans to depreciate these assets over a 6-year period. In 2021, Young earns a net Income of $200,000 and declares and pays $55,000 In cash dividends. These figures Increase the subsidiary's Retained Earnings to a $800,000 balance at the end of 2021. Monica employs the equity method of accounting. Hence, It reports $142,680 investment Income for 2021 with an Investment account balance of $921,120. Prepare the worksheet entries required for the consolidation of Monica Company and Young Company. (If no entry Is required for a transaction/event, select "No Journal Entry Required" In the first account field.)