Given information for the problem is as follows:

The Yellow boxes need answered, can you please explain how you got these answered, Thank you!

a. How was the balance in the Equity Earnings of Sander account determined? 2018 net income reported by Sander Excess patent fair value amortization Deferred gross profit for 12/31/18 intra-entity inventory Recognized gross profit for 1/1/18 intra-entity inventory Sander's net income adjusted To controlling interest To noncontrolling interest Sander Company outstanding stock purchased by Plymouth Corp on 1/1/16 $$$$80%1,200,000925,0001,500,000350,000 Cash paid for Sander stock Sander's book value at time of purchase Sander's business fair value at time of purchase Undervaluation of Sander's patent account at time of purchase 5 Remaining life of patents (years) Intra-entity inventory sales for past three years: \begin{tabular}{|c|c|c|c|c|} \hline Year & & a-EntitySales & Intra-EntityEndingInv.atTransferPrice & GrossProfitRateonIntra-EntityInventoryTransfers \\ \hline 2016 & $ & 125,000 & 80,000 & 25% \\ \hline 2017 & & 220,000 & 125,000 & 28% \\ \hline 2018 & & 300,000 & 160,000 & 25% \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multirow[b]{2}{*}{ Accounts } & \multirow[b]{2}{*}{ Plymouth } & \multirow[b]{2}{*}{ Sander } & \multicolumn{2}{|c|}{AdjustmentsandEliminations} & \multirow{2}{*}{Non-controllingInterest} & \multirow{2}{*}{ConsolidatedTotals} \\ \hline & & & Debit & Credit & & \\ \hline Revenues & (1,740,000) & (950,000) & & & & \\ \hline Cost of goods sold & 820,000 & 500,000 & & & & \\ \hline Depreciation expense & 104,000 & 85,000 & & & & \\ \hline Amortization expense & 220,000 & 120,000 & & & & \\ \hline Interest expense & 20,000 & 15,000 & & & & \\ \hline Equity in earnings of Sander & (124,000) & & & & & \\ \hline Separate company net income & (700,000) & (230,000) & & & & \\ \hline \multicolumn{7}{|l|}{ Consolidated net income } \\ \hline \multicolumn{7}{|l|}{ to noncontrolling interest } \\ \hline \multicolumn{7}{|l|}{ to Plymouth Corp. } \\ \hline Retained earnings, 11 & (2,800,000) & (345,000) & & & & \\ \hline Net Income & (700,000) & (230,000) & & & & \\ \hline Dividends declared & 200,000 & 25,000 & & & & \\ \hline Retained earnings, 12/31 & (3,300,000) & (550,000) & & & & \\ \hline Cash & 535,000 & 115,000 & & & & \\ \hline Acoounts receivable & 575,000 & 215,000 & & & & \\ \hline Inventory & 990,000 & 800,000 & & & & \\ \hline Investment in Sander & 1,420,000 & & & & & \\ \hline Buildings and equipment & 1,025,000 & 863,000 & & & & \\ \hline Patents & 950,000 & 107,000 & & & & \\ \hline \multicolumn{7}{|l|}{ Goodwill } \\ \hline Total assets & 5,495,000 & 2,100,000 & & & & \\ \hline Accounts payable & (450,000) & (200,000) & & & & \\ \hline Notes payable & (545,000) & (450,000) & & & & \\ \hline \multicolumn{7}{|l|}{ Noncontrolling interest in Sander 111} \\ \hline \multicolumn{7}{|c|}{ Noncontrolling interest in Sander 12/31} \\ \hline Common stock & (900,000) & (800,000) & & & & \\ \hline Additional paid-in capital & (300,000) & (100,000) & & & & \\ \hline Retained earnings 12/31 & (3,300,000) & (550,000) & & & & \\ \hline Total liabilities and equities & (5,495,000) & (2,100,000) & & & & \\ \hline \end{tabular} Separate financial statements as of December 31, 2018: \begin{tabular}{|c|c|c|} \hline & Plymouth & Sander \\ \hline Revenues & $(1,740,000) & $(950,000) \\ \hline Cost of goods sold & 820,000 & 500,000 \\ \hline Depreciation expense & 104,000 & 85,000 \\ \hline Amortization expense & 220,000 & 120,000 \\ \hline Interest expense & 20,000 & 15,000 \\ \hline Equity in earnings of Sander & (124,000) & - \\ \hline Net income & $(700,000) & (230,000) \\ \hline Retained earnings, 1/1/18 & $(2,800,000) & (345,000) \\ \hline Net income & (700,000) & (230,000) \\ \hline Dividends declared & 200,000 & 25,000 \\ \hline Retained earnings, 12/31/18 & $(3,300,000) & (550,000) \\ \hline Cash & 535,000 & 115,000 \\ \hline Accounts receivable & 575,000 & 215,000 \\ \hline Inventories & 990,000 & 800,000 \\ \hline Investment in Sander & 1,420,000 & - \\ \hline Buildings and equipment & 1,025,000 & 863,000 \\ \hline Patents & 950,000 & 107,000 \\ \hline Total assets & $5,495,000 & $2,100,000 \\ \hline Accounts payable & $(450,000) & $(200,000) \\ \hline Notes payable & (545,000) & (450,000) \\ \hline Common stock & (900,000) & (800,000) \\ \hline Additional paid-in capital & (300,000) & (100,000) \\ \hline Retained earnings 12/31/18 & (3,300,000) & (550,000) \\ \hline Total liabilities and stockholders' equity & $(5,495,000) & $(2,100,000) \\ \hline \end{tabular}