Intra entity inventory transfer

Hi I'm having trouble understanding the inventory transfer portion of this question.

To confirm this is an upstream of sales correct? as Panther is the parent and Stark is the subsidiary and Stark sold inventory to Panther?

Since it's upstream these are my journal entries:

I debited retained earnings for the G* entry for recognition of 2020 intra-entity gross profit. Debit to retained earnings and not investment in Stark because it's upstream.

Now for the consolidation entries these are the ones I did:

Should the number of retained earnings and the investment in Stark in that in entry S be affected by the G* journal entry?

For some reason on my consolidation worksheet the investment in stark account is giving me problems.

There is a difference between credits and debits by the $21,750 of retained earnings from the G* entry.

I don't know where that $21,750 should go on the consolidation entry for this upstream transaction. Since I didn't debit the retained earnings in entry G* and debited retained earnings instead, I'm confused as to why the investment in Stark account is not balancing.

An explanation would be extremely helpful! Thank you.

On January 1, 2020, Panther, Inc., issued securities with a total fair value of $553,000 for 100 percent of Stark Corporation's outstanding ownership shares. Stark has long supplied inventory to Panther. The companies expect to achieve synergies with production scheduling and product development with this combination. Although Stark's book value at the acquisition date was $309,000, the fair value of its trademarks was assessed to be $52,000 more than their carrying amounts. Additionally, Stark's patented technology was undervalued in its accounting records by $192,000. The trademarks were considered to have indefinite lives, and the estimated remaining life of the patented technology was eight years. In 2020, Stark sold Panther inventory costing $75,000 for $150,000. As of December 31,2020 , Panther had resold 71 percent of this inventory. In 2021, Panther bought from Stark \$151,000 of inventory that had an original cost of $75,500. At the end of 2021 , Panther held $40,900 (transfer price) of inventory acquired from Stark, all from its 2021 purchases. During 2021, Panther sold Stark a parcel of land for $94,900 and recorded a gain of $17,100 on the sale. Stark still owes Panther $66,400 (current liability) related to the land sale. At the end of 2021, Panther and Stark prepared the following statements for consolidation. a. Show how Panther computed its $52,100 equity in Stark's earnings balance. b. Prepare a 2021 consolidated worksheet for Panther and Stark. G Retainedeomings 21750 cogs TA Saves is1000 cogs 151000 G Cogs 20450 Inventory 20450 \begin{tabular}{|r|r|r|r|} \hline S & Common Stock & 125,000 & \\ \hline & Additional PIC & 54,750 & \\ \hline & Retained Earnings & 298,300 & \\ \hline \multicolumn{2}{|r|}{ Investment in Stark } & 480,750 \\ \hline \end{tabular} \begin{tabular}{|l|l|r|r|} \hline A & Trademarks & 52,000 & \\ \hline & Patent Tech & 168,000 & \\ \hline & & Investment in Stark & 220,000 \\ \hline \end{tabular} \begin{tabular}{|l|r|r|r|} \hline I & Investment Income & 52,100 & \\ \hline & & Investment in Stark & 52,100 \\ \hline & & & \\ \hline D & Investment in Stark & 28,500 & \\ \hline & & Dividends Declared & 28,500 \\ \hline & & & \\ \hline E & Amortization Expense & 24,000 & \\ \hline & & Patent Tech & \\ \hline \end{tabular} On January 1, 2020, Panther, Inc., issued securities with a total fair value of $553,000 for 100 percent of Stark Corporation's outstanding ownership shares. Stark has long supplied inventory to Panther. The companies expect to achieve synergies with production scheduling and product development with this combination. Although Stark's book value at the acquisition date was $309,000, the fair value of its trademarks was assessed to be $52,000 more than their carrying amounts. Additionally, Stark's patented technology was undervalued in its accounting records by $192,000. The trademarks were considered to have indefinite lives, and the estimated remaining life of the patented technology was eight years. In 2020, Stark sold Panther inventory costing $75,000 for $150,000. As of December 31,2020 , Panther had resold 71 percent of this inventory. In 2021, Panther bought from Stark \$151,000 of inventory that had an original cost of $75,500. At the end of 2021 , Panther held $40,900 (transfer price) of inventory acquired from Stark, all from its 2021 purchases. During 2021, Panther sold Stark a parcel of land for $94,900 and recorded a gain of $17,100 on the sale. Stark still owes Panther $66,400 (current liability) related to the land sale. At the end of 2021, Panther and Stark prepared the following statements for consolidation. a. Show how Panther computed its $52,100 equity in Stark's earnings balance. b. Prepare a 2021 consolidated worksheet for Panther and Stark. G Retainedeomings 21750 cogs TA Saves is1000 cogs 151000 G Cogs 20450 Inventory 20450 \begin{tabular}{|r|r|r|r|} \hline S & Common Stock & 125,000 & \\ \hline & Additional PIC & 54,750 & \\ \hline & Retained Earnings & 298,300 & \\ \hline \multicolumn{2}{|r|}{ Investment in Stark } & 480,750 \\ \hline \end{tabular} \begin{tabular}{|l|l|r|r|} \hline A & Trademarks & 52,000 & \\ \hline & Patent Tech & 168,000 & \\ \hline & & Investment in Stark & 220,000 \\ \hline \end{tabular} \begin{tabular}{|l|r|r|r|} \hline I & Investment Income & 52,100 & \\ \hline & & Investment in Stark & 52,100 \\ \hline & & & \\ \hline D & Investment in Stark & 28,500 & \\ \hline & & Dividends Declared & 28,500 \\ \hline & & & \\ \hline E & Amortization Expense & 24,000 & \\ \hline & & Patent Tech & \\ \hline \end{tabular}