On January 1, 2023, Pulaski, Incorporated, acquired a 60 percent interest in the common stock of Sheridan, Incorporated, for $372,000. Sheridan's book value on that date consisted of common stock of $100,000 and retained earnings of $219,900. Also, the acquisition-date fair value of the 40 percent noncontrolling interest was $248,000. The subsidiary held patents (with a 10-year remaining life) that were undervalued within the company's accounting records by $79,300 and also had unpatented technology (15- year estimated remaining life) undervalued by $54,900. 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: Transfer Price to Sheridan $ 159,750 150, 400 Ending Balance (at transfer price) $ 53,250 37,600 The individual financial statements for these two companies as of December 31, 2024, and the year then ended follow: Pulaski, Incorporated $ (736,000) 483,700 198,540 (34,256) Sheridan, Incorporated $ (368,000) 224,800 76,600 0 $ (88,016) $ (780, 200) (88,016) 48,300 $ (819,916) $ 279,400 262,400 415, 112 339,000 242,000 0 Cost to Pulaski Year 2023 $ 127,800 2024 112,800 Items Sales Cost of goods sold Operating expenses Equity in earnings in Sheridan Net income Retained earnings, 1/1/24 Net income Dividends declared Retained earnings, 12/31/24 Cash and receivables Inventory Investment in Sheridan Buildings (net) Equipment (net) Patents (net) Total assets Liabilities Commor stock Retained earnings, 12/31/24 Total liabilities and equities Note: Parentheses indicate a credit balance. $ (66,600) $ (283,000) (66,600) 19,000 $ (330,600) $ 150,500 131, 200 0 205,600 89,400 24,000 $ 600, 700 $ (170,100) (100,000) (330,600) $ (1,537,912) $ (600,700) $ 1,537,912 $ (417,996) (300,000) (819,916) Required: a. Show how Pulaski determined the $415,112 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.