5 Plaza, Inc., acquires 80 percent of the outstanding common stock of Stanford Corporation on January 1, 2018, in exchange for $912,900 cash. At the acquisition date, Stanford's total fair value, including the noncontrolling interest, was assessed at $1,141,125. Also at the acquisition date, Stanford's book value was $524,500. Several individual items on Stanford's financial records had fair values that differed from their book values as follows: 18 points Fair Value $350, 700 Book Value Tradenames (indefinite life) $286,700 Property and equipment (net, 8-year remaining life) 231,200 Patent (14-year remaining 113,300 life) eBook 248,800 146,900 Print Referencer References For internal reporting purposes, Plaza, Inc., employs the equity method to account for this investment. The following account balances are for the year ending December 31, 2018, for both companies. $ Revenues Cost of goods sold Depreciation expense Amortization expense Equity in income of Stanford Net income Plaza Stanford (755, 900) $ (746,500) 417,900 315,500 177,100 28,900 22,500 (300,000) 0 (460, 900) $ (379,600) $ Retained earnings, 1/1/18 Net income Dividends declared Retained earnings, 12/31/18 $(1,016,600) $ (422,000) (460,900) (379,600) 239,200 22,000 $(1,238,300) $ (779,600) $ Current assets Investment in Stanford Tradenames Property and equipment (net) Patents Total assets 685,600 1,195,300 191,400 821,500 $ 344,300 0 286,700 202,300 90,800 $ 924,100 0 $ 2,893,800 Accounts payable Common stock Additional paid-in capital Retained earnings (above) Total liabilities and equities $ (113,300) $ (42,000) (239,200) (84,000) (1,303, 000) (18,500) (1,238, 300) (779,600) $ (2,893,800) $ (924,100) At year-end, there were no intra-entity receivables or payables. Prepare a worksheet to consolidate the financial statements of Plaza, Inc. and its subsidiary Stanford. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Amounts in the Debit and Credit columns should be entered as positive. Negative amounts for the Noncontrolling Interest and Consolidated Totals columns should be entered with a minus sign.) Consolidated Totals Accounts Revenues Cost of goods sold Depreciation expense Amortization expense Equity in income of Stanford Net income Consolidated net income NCI share of CNI PLAZA CORPORATION AND STANFORD CORPORATION Consolidation Worksheet For Year Ending December 31, 2018 Consolidation Entries Noncontrolling Plaza Stanford Debit Credit Interest $ (755,900) $ (746,500) 417,900 315,500 177,100 28,900 0 22,500 (300,000) 0 $ (460,900) $ (379,600) $ Plaza share of CNI $ 0 Retained earnings, 1/1 Net income Dividends declared Retained earnings, 12/31 $ 0 $ $ (422,000) (1,016,600) (460,900) (379,600) 239,200 22,000 $ (1,238,300) $ (779,600) $ 685,600 $ 344,300 1,195,300 0 191,400 286,700 821,500 202,300 0 90,800 Current assets Investment in Stanford Tradenames Property and equipment (net) Patents Goodwill Total assets Accounts payable Common stock Additional paid-in capital Noncontrolling interest Retained earnings, 12/31 $ $ $ 2,893,800 (113,300) (239,200) (1,303,000) 924,100 (42,000) (84,000) (18,500) (779,600) (1,238,300) $ (2,893,800) Total liabilities and equities $ (924,100) $ 0 $ 0 $ 0