On January 1, 2023, Gomez Company acquired 90 percent of Martin Company's outstanding stock for $756,720. The 10 percent noncontrolling Interest had an assessed fair value of $84,080 on that date. Martin's acquisition-date book value consisted of $306,000 common stock and $446,000 retained earnings. Any acquisition-date excess fair value over book value was attributed to an unrecorded licensing agreement owned by Martin with an estimated remaining life of 12 years. Gomez uses the equity method to account for its Investment in Martin. Also on January 1, 2023, Martin acquired an 80 percent Interest in Short Company for $351,800. At the acquisition date, the 20 percent noncontrolling Interest fair value was $87,950. Short's acquisition-date book value consisted of $203,000 common stock and $183,000 retained earnings. Any excess fair value was attributed to a fully amortized copyright that had a remaining life of 5 years. Martin uses the equity method to account for its Investment in Short Reported separate net Income (before Inclusion of equity method income) totals for 2023 follow: Martin Company Short Company $ 178,600 124,888 The following are the 2024 financial statements for these three companies (credit balances Indicated by parentheses). Short has transferred Inventory to Martin since the takeover amounting to $76,000 (2023) and $86,000 (2024). These transactions Include the same markup applicable to Short's outside sales. In each year, Martin carried 20 percent of this Inventory into the succeeding year before disposing of it. An effective tax rate of 21 percent is applicable to all companies. All dividend declarations are paid in the same period. Sales Accounts Cost of goods sold Operating expenses Equity income of Martin Equity income of Short Net income Retained earnings, 1/1/24 Net income (above) Dividends declared Retained earnings, 12/31/24 Cash and receivables Inventory Investment in Martin Company Investment in Short Company Land, buildings, and equipment (net) Total assets Liabilities Common stock Retained earnings, 12/31/24 Gomez Company $ (1,888,000) 537,600 112,006 (191,880) a $ (550,274) $ (966,274) (550,274) 131,000 $ (1,385,548) $121,500 115,000 1,179,324 8 836,112 $ 2,281,324 $ (383,776) (512,880) (1,385,548) Martin Company $ (627,000) 334,488 Short Company $ (568,080) 152,200 8 (88,288) $(220,600) $ (714,680) (228,688) a $ (935,288) $ 105,688 213,000 517,168 757,840 $1,593,688 $ (352,488) (386,000) (935,288) Total liabilities and equities $ (2,281,324) $ (1,593,688) 280,000 168,000 a $ (112,080) $ (338,880) (112,080) a $ (442,880) $ 94,000 198,000 a 574,000 $ 866,000 $ (212,000) (212,000) (442,880) $ (866,080) Required: 1. Prepare schedules that show the calculations of the Investment In Short 12/31/24 account balances. 2. Prepare schedules that show the calculations of the Investment in Martin 12/31/24 account balances. b. Prepare the business combination's 2024 consolidation worksheet; Ignore Income tax effects c. Determine the amount of Income tax for Gomez and Martin on a consolidated tax return for 2024. d. Determine the amount of Short's Income tax on a separate tax return for 2024. e. Based on the answers to requirements (c) and (d), what journal entry does this combination make to record 2024 Income tax? Prepare schedules that show the calculations of the Investment in Short 12/31/24 account balances. Prepare schedules that show the calculations of the Investment in Martin 12/31/24 account balances Consideration transferred by Martin for Short Short's separate 2023 net income Excess copyright amortization 2023 intra-entity Ending Inventory profit deferral Short's adjusted 2023 net income Percentage owned by Martin Short's separate 2024 income Excess copyright amortization Intra-entity Beginning Inventory profit recognition Intra-entity Ending Inventory profit deferral Short's adjusted 2024 net income Percentage owned by Martin Investment in Short 12/31/24 $ 351,800 $ 124,800 Consideration transferred by Gomez for Martin $ 756,720 Martin's separate 2023 net income $ 178,600 Martin's share of Short's 2023 net income Martin's 2023 net income Excess licensing agreement amortization 80% 112,000 Martin's adjusted 2023 net income Percentage owned by Gomez 90% Equity in earnings of Martin 2023 Martin's 2024 net income Excess licensing agreement amortization Martin's adjusted 2024 net income 80% Percentage owned by Gomez 90% $ 351,800 Equity in earnings of Martin 2024