On January 1, 2017, McIlroy, Inc., acquired a 60 percent interest in the common stock of Stinson, Inc., for $372,000. Stinsons book value on that date consisted of common stock of $100,000 and retained earnings of $220,000. Also, the acquisition-date fair value of the 40 percent non-controlling interest was $248,000. The subsidiary held patents (with a 10-year remaining life) that were undervalued within the companys accounting records by $70,000 and an unrecorded customer list (15-year remaining life) assessed at a $45,000 fair value. Any remaining excess acquisition-date fair value was assigned to goodwill. Since acquisition, McIlroy has applied the equity method to its Investment in Stinson account and no goodwill impairment has occurred.

Intra-entity inventory sales between the two companies have been made as follows:

Year	Cost to McIlroy	Transfer Price to Stinson	Ending Balance (at transfer price)
2017	$120,000	$150,000	$50,000
2018	112,000	160,000	40,000

Below are the individual financial statements for these two companies for 2018:

	McIlroy, Inc.	Stinson, Inc.
Sales	$ (700,000)	$(335,000)
Cost of goods sold	460,000	205,000
Operating expenses	188,000	70,000
Equity in earnings in Stinson	(28,000)	0
Net income	$ (80,000)	$(60,000)
Retained earnings, 1/1/18	$ (695,000)	$(280,000)
Net income	(80,000)	(60,000)
Dividends declared	45,000	15,000
Retained earnings, 12/31/18	$ (730,000)	$(325,000)
Cash and receivables	$ 48,000	$ 148,000
Inventory	233,000	129,000
Investment in Stinson	411,000	0
Buildings (net)	308,000	202,000
Equipment (net)	220,000	86,000
Patents (net)	0	20,000
Total assets	1,420,000	$585,000
Liabilities	$ (390,000)	$(160,000)
Common stock	(300,000)	(100,000)
Retained earnings, 12/31/18	(730,000)	(325,000)
Total liabilities and equities	$(1,420,000)	$(585,000)

1. Prepare Fair Value Allocation and Amortization Schedule on date of purchase;
2. Prepare Goodwill Allocation Schedule, if any, on date of purchase;
3. Show how Mcllroy determined its Investment in Stinson account balance on Dec 31, 2018;
4. Show how Mcllroy determined its Equity in Earnings of Stinson for 2018;
5. Determine NCI Beginning Balance, 1/1/2018;
6. Prepare SAIDE entries for 12/31/2018;
7. Determine NCI in Income and Dividends of pawn and NCI Ending Balance, 12/31/18;
8. Prepare TI, G and *G entries related to Downstream Transfer.
9. Prepare Consolidation Worksheet as of December 31, 2018.