Pavin acquires all of Stabler's outstanding shares on January 1, 2015, 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, 2018, Pavin reports $300,000 in bonds outstanding with a carrying amount of $282,000. Stabler purchases half of these bonds on the open market for $145,500.

During 2018, Pavin 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, 2018. Dividends were both declared and paid during the current year. Prepare a worksheet to produce consolidated balances. (Credits are indicated by parentheses.)

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Pavin Stabler $ (740,000) 455,000 125,000 36,000 $(505,000) 240,000 158,500 Revenues Cost of goods sold Interest expense-bonds. Interest Income-bond Investment Loss on extinguishment of bonds Equity In Stabler's Income (16,500) 123 $ (247.000 $ (345,000) (247,000) Net Income 123,000 Retalned earnings, 1/1/18 Net Income (above Dividends declared. $(361,000) (123,000) 61,000 423,000 155,000 Retalned earnings, 12/31/18 Cash and recelvables Inventory Investment In Stabler Investment In Pavin bonds Land, buildings, and equipment (net) Trademarks $ (437.000 $ 217,000 175,000 613,000 $ 35,000 87,000 147,000 541,000 245,000 Total assets $ 1,250,000 $810,000 $ (225,000) (300,000) 12,000 (300,000) $(167,000) (100,000) Accounts payable Bonds payable Discount on bonds Common stock Retalned earnings (above). 437 1,250 (120,000) 423,000 810,000 Total labllities and stockholders' equlty