Pavin acquires all of Stabler's outstanding shares on January 1, 2009 for $460,000 in cash. Of this amount, $30,000 was attributed to equipment with a 10-year remaining life and $40,000 was assigned to trademarks expensed over a 20-year period. Pavin applies the partial equity method so that income is accrued each period based solely on the earnings reported by the subsidiary. On January 1, 2012, Pavin reports $300,000 in bonds outstanding with a book value of $282,000. Stabler purchases half of these bonds on the open market for $145,500. During 2012, Davin begins to sell merchandise to Stabler. During that year, Inventory costing $80,000 was transferred at a price of $100,000. All but $10,000 (at sales price) of these goods were resold to outside parties by year-end. Stabler still owes $33,000 for inventory shipped from Pavin during December. The following financial figures are for the two companies for the year ending December 31, 2012. Prepare a worksheet to produce consolidated balances. (Credits are indicated by parentheses.)

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Pavin Stabler $740,000)S(505,000) Cost of goods sold 455,000 240,000 125,000 158,500 Interest expense-bonds Interest income-bond investment Loss on extinguishment of bonds Equity in Stabler's income Net income Retained earnings, 1/1/12 Retained earnings, 1/1/12 Net income (above) Dividends paid Retained earnings, 12/31/12 Cash and receivables Inventory Investment in Stabler Investment in Pavin bonds Land, buildings, and equipment (net) 36,000 -0- (16,500) (123,000)-0- $(247,000) $(123,000) $ (345,000) $(361,000) (247,000) (123,000) 155,000 61,000 $ (437,000)(423,000) $217,000 $35,000 175,000 87,000 613,000 -0 147,000 245,000 541,000 Total assets Accounts payable Bonds payable Discount on bonds Common stock Retained earnings (above) Total liabilities and stockholders' equity$(1,250,000)S(810,000) $1,250,000 S 810,000 $(225,000) $(167,000) (300,000) (100,000) 12,000 (300,000) 120,000) (437,000) (423,000)