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On January $1,2024,$ Sledge had common stock of $$290,000$ and retained earnings of $$430,000.$ During that year, Sledge reported sales of $$300,000,$ cost of goods sold of $$155,000,$ and operating expenses of $$57,000.$

On January $1,2022,$ Percy, Incorporated, acquired $80$ percent of Sledge's outstanding voting stock. At that date, $$77,000$ of the acquisition$-$date fair value was assigned to unrecorded contracts $($with a $20-$year life$)$ and $$37,000$ to an undervalued building $($with a $10-$year remaining life$).$

In $2023,$ Sledge sold inventory costing $$20,800$ to Percy for $$32,000.$ Of this merchandise, Percy continued to hold $$6,000$ at year$-$end. During $2024,$ Sledge transferred inventory costing $$20,350$ to Percy for $$37,000.$ Percy still held half of these items at year$-$end.

On January $1,2023,$ Percy sold equipment to Sledge for $$20,500.$ This asset originally cost $$33,000$ but had a January $1,2023,$ book value of $$12,400.$ 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 $31,2024.$

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

Complete this question by entering your answers in the tabs below.

Required $A$

Required B

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.

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$1$ Prepare Entry $*$G

$2$ Prepare Entry $*$TA

$3$ Prepare Entry S

$4$ Prepare Entry A

$5$ Prepare Entry I

$6$ Prepare Entry E

$7$ Prepare Entry TI

$8$ Prepare Entry G

Note : $=$ journal entry has been entered

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Required $A$

Required B

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