AutoSave OFF A SUSE w Advanced Acct 1 Home Insert Draw Design Layout References Mailings Review View Tell me Share Comments X Arial 10 . AP Aa to EvEvv ES AJ AaBbCcDdEe AaBbccddee AaBbcc AaBbccddee AaBbc Aabb Cedd Ee AaBbCcDdEe Paste BIUab x, x? ADA No Spacing Normal Title Subtitle Heading 1 Heading 2 V Subtle Emph... V Dictate Styles Pane 3 6 7 8 L Plaza, Inc., acquires 80 percent of the outstanding common stock of Stanford Corporation on January 1, 2021, in exchange for $862,000 cash. At the acquisition date, Stanford's total fair value, including the noncontrolling interest, was assessed at $1,077,500. Also at the acquisition date, Stanford's book value was S533,900. Several individual items on Stanford's financial records had fair values that differed from their book values as follows: Book Value Fair Value Trade names (indefinite life) $ 273.900 $412,700 Property and equipment (net , 8-year remaining life) 208,800 228,800 Patent (14-year remaining life) 109,200 142,800 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, 2021, for both companies. m Revenues Cost of goods sold Depreciation expense Amortization expense Equity in income of Stanford Net income Plaza Stanford $ (714,600) $(669,900) 406,900 285,500 182,400 26,100 0 20,400 (266,400) 0 $ (391,700) $(337,900) Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 $(1,032,300) $(482,600) (391,700) (337,900) 229,400 25,000 $(1,194,600) $(795,500) Current assets Investment in Stanford Trade names Property and equipment (net) Patents Total assets $ 627,700 $ 333,400 1,108,400 0 175,600 273,900 740,500 182,700 0 0 88,800 $ 2,652,200 $ 878,800 Accounts payable Common stock Additional paid-in capital Retained earnings (above) Total liabilities and equities $ (104,200) $ (32,000) (217,200) (50,000) (1,136,200) (1,300) (1,194,600) (795,500) $(2,652,200) $(878,800) 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. oa Page 1 of 1 282 words LE X English (United States) O Focus 5 - + 116%