4 Pavin acquires all of Stabler's outstanding shares on January 1, 2018, for $670,000 in cash. Of this amount, $51,000 was attributed to equipment with a 10-year remaining life and $61,000 was assigned to trademarks expensed over a 20-year period. Pavin applies the partial equity method so that Income is accrued each perlod based solely on the earnings reported by the subsidiary. 4 points On January 1, 2021, Pavin reports $510,000 in bonds outstanding with a carrying amount of $473,600. Stabler purchases half of these bonds on the open market for $245,900. During 2021, Pavin begins to sell merchandise to Stabler. During that year, Inventory costing $123,000 was transferred at a price of $164,000. All but $31,000 (at sales price) of these goods were resold to outside parties by year-end. Stabler still owes $54,000 for Inventory shipped from Pavin during December eBook The following financial figures are for the two companies for the year ending December 31, 2021. Dividends were both declared and pald during the current year. Print ur References $ Stabler $ (547,880) 261,080 179,500 (24,650) $ $ Pavin (803, eee) 476, eee 146, eee 57, eee e @ (131,150) (255, 150) (366,eee) (255, 150) 176, eee (445,150) 238, eee 196, eee 689, 150 e 266,eee Revenues Cost of goods sold Expenses Interest expense-bonds Interest income-bond investment Loss on extinguishment of bonds Equity in Stabler's income Net income Retained earnings, 1/1/21 Net income (above) Dividends declared Retained earnings, 12/31/21 Cash and receivables Inventory Investment in Stabler Investment in Pavin bonds Land, buildings, and equipment (net) Trademarks Total assets Accounts payable Bonds payable Discount on bonds Common stock Retained earnings (above) Total liabilities and stockholders' equity $ (131, 150) $ (403,000) (131, 150 98,888 $ (436,150) $ 56,888 108,00 $ $ $ 249,750 562,080 $ $ 1,389,150 $ 975, 750 $ (277,688) (121,000) $ (125, eee) (510, eee) 21, eee (330, eee) (445,150) $ (1,389,150) ( (141,080) (436,150) $ (975,750) 4. Prepare a worksheet to produce consolidated balances. (For accounts where multiple consolidation entries are required, combine all deblt entries Into one amount and enter this amount In the deblt column of the worksheet. Similarly, combine all credit entries Into one amount and enter this amount in the credit column of the worksheet. Input all amounts as positive values.) 4 points eBook PAVIN AND STABLER Consolidation Worksheet For Year Ending December 31, 2021 Consolidation Entries Pavin Stabler Debit Credit S 803,000 $ 547,000 476,000 261,000 146,000 179,500 57,000 0 Consolidated Totals Print References 0 24,650 0 0 0 S 131,150 255,150 366,000 $ 131,150 $ Accounts Revenues Cost of goods sold Expenses Interest expense-bonds Interest income-bond investment Loss on extinguishment of bonds Equity in Stabler's income Net income Retained earnings, 1/1/21 (Pavin) Retained earnings, 1/1/21 (Stabler) Net income Dividends declared Retained earnings, 12/31/21 Cash and receivables Inventory Investment in Stabler Investment in Pavin bonds Land, buildings, and equipment (net) Trademarks Total assets Accounts payable Bonds payable Discount on bonds Common stock Retained earnings Total liabilities and stockholders' equity 255,150 176,000 445,150 403,000 131,150 98,000 436,150 S $ $ 0 S $ 56,000 238,000 196,000 689,150 108,000 0 0 266,000 0 S $ 249,750 562.000 0 975,750 277,600 121,000 0 1,389,150 125,000 510,000 21,000 $ 141,000 330,000 445,150 1,389,150 0 436,150 975,750 S $ S 0 S 0 $ 0