On January 1, 2023, Pulaski, Incorporated, acquired a 60 percent interest in the common stock of Sheridan, Incorporated, for $412,800 Sheridan's book value on that date consisted of common stock of $100,000 and retained earnings of $244,000 Also, the acquisition date fair value of the 40 percent noncontrolling interest was $275,200. The subsidiary held patents (with a 10 year remaining life) that were undervalued within the company's accounting records by $85,000 and also had unpatented technology (15- year estimated remaining life) undervalued by $61,200. Any remaining excess acquisition-date fair value was assigned to an indefinite- lived trade name. Since acquisition, Pulaski has applied the equity method to its Investment in Sheridan account. At year-end, there are no intra-entity payables or receivables. Intra-entity inventory sales between the two companies have been made as follows: Year Cost to Pulaski 2023 $ 135,900 2024 112,800 to Sheridan Transfer Price Ending Balance (at transfer price) $ 56,625 37,600 $ 169,875 150,400 The Individual financial statements for these two companies as of December 31, 2024, and the year then ended follow Items Sales Cost of goods sold Operating expenses Equity in earnings in Sheridan Not income Retained earnings, 1/1/24 Not income Dividends declared Retained earnings, 12/31/24 Cash and receivables Inventory Investment in Sheridan Buildings (net) Pulaski, Incorporated $ (753,000) 494,900 201,405 (37,097) $ (93,792) $ (815,700) (93,792) 50,400 $ (859,092) $292,100 274,400 443,504 360,000 256,800 $ 1,626,804 $ (467,712) (300,000) (859,092) $ (1,626,804) Sheridan, Incorporated $ (391,000) 238,600 81,200 $ (71,200) $ (285,400) (71,200) 20,600 $ (336,000) $153,000 133,300 207,300 91,100 26,100 $ 611,300 $ (175,300) (100,000) (336,000) $ (611,300) Equipment (net) Patents (net) Total assets Liabilities Common stock Retained earnings, 12/31/24 Total liabilities and equities Note: Parentheses Indicate a credit balance. Required: a. Show how Pulaski determined the $443,504 Investment in Sheridan account balance. Assume that Pulaski defers 100 percent of downstream intra-entity profits against its share of Sheridan's income b. Prepare a consolidated worksheet to determine appropriate balances for external financial reporting as of December 31, 2024.