*********Just need to know what the right answers are for the ones marked in red. Thank you!

Problem 5-37 (Static) (LO 5:2,5-3,5-4, 5-6) On January 1, 2020, Panther, Inc., issued securities with a total fair value of $577,000 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 $300,000, the fair value of its trademarks was assessed to be $45,000 more than their carrying amounts. Additionally, Stark's patented technology was undervalued in its accounting records by $232,000. 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 $125,000. As of December 31, 2020, Panther had resold 74 percent of this inventory. In 2021, Panther bought from Stark $140,000 of inventory that had an original cost of $70,000. At the end of 2021, Panther held $38,000 (transfer price) of inventory acquired from Stark, all from its 2021 purchases. During 2021, Panther sold Stark a parcel of land for $88,000 and recorded a gain of $16,000 on the sale. Stark still owes Panther $62,000 (current liability) related to the land sale. At the end of 2021, Panther and Stark prepared the following statements for consolidation. Stark Corporation $ (360,000) 189,000 81,000 a Revenues Cost of goods sold Other operating expenses Gain on sale of land Equity in Stark's earnings Net income Retained earnings 1/1/21 Net income Dividends declared Retained earnings 12/31/21 Cash and receivables Inventory Investment in Stark Trademarks Land, buildings, and equip. (net) Patented technology Total assets Liabilities Common stock Additional paid-in capital Retained earnings 12/31/21 Total liabilities and equity Panther, Inc. $ (710,000) 305,000 167,000 (16,000) (39,000) (293, 000) $ (367,000) (293, 000) 80,000 $ (580,000) $ 102,000 311,000 691,000 $ (90,000) $ (292,000) (90,000) 25,000 $ (357,000) $ 154,000 110,000 638,000 A 1,742,000 $ (462,000) (400,000) (300,000) (580,000) $ (1,742,000) 58,000 280,000 125,000 $ 727,000 $ (220,000) (100,000) (50,000) (357,000) $ (727,000) a. Show how Panther computed its $39,000 equity in Stark's earnings balance. b. Prepare a 2021 consolidated worksheet for Panther and Stark. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Show how Panther computed its $39,000 equity in Stark's earnings balance. (Input all amounts as positive values.) >$ 90,000 13,000 Stark reported net income Beginning inventory gross profit Ending inventory gross profit Patented technology amortization Gain on sale of land Book value of subsidiary Fair value in excess of book value Equity in Stark's earnings 19,000 29,000 16,000 x x $ 0 X Prepare a 2021 consolidated worksheet for Panther and Stark. (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. Input all amounts as positive values.) Show less PANTHER AND STARK Consolidation Worksheet For the Year Ending December 31, 2021 Consolidation Entries Accounts Panther Stark Debit Credit Consolidated Totals 930,000 360,000 277,000 $ 140,000 19,000 29,000 16,000 39,000 153,000 0 $ $ (710,000) 305,000 167,000 (16,000) (39,000) $ (293,000) $ (367,000) (293,000) 80,000 $ (580,000) $ 102,000 311,000 691,000 0 293,000 367,000 293,000 292,000 Revenues Cost of goods sold Other operating expenses Gain on sale of land Equity in Stark's earnings Net income Retained earnings 1/1/21 Net income Dividends declared Retained earnings 12/31/21 Cash and receivables Inventory Investment in Stark Trademarks Land, buildings, and equipment (net) Patented technology Total assets $ 25,000 80,000 580,000 62,000 > $ $ (360,000) 189,000 81,000 0 0 $ (90,000) $ (292,000) (90,000) 25,000 $ (357,000) $ 154,000 110,000 0 58,000 280,000 125,000 $ 727,000 $ (220,000) (100,000) (50,000) (357,000) $ (727,000) 19,000 729,000 X 38,000 X 45,000 0 194,000 402,000 690,000 X 103,000 902,000 299,000 1,900,000 638,000 0 $ 1,742,000 16,000 29,000 203,000 $ Liabilities 62,000 $ 620,000 Common stock 100,000 $ (462,000) (400,000) (300,000) (580,000) 50,000 Additional paid-in capital Retained earnings 12/31/21 Total liabilities and equity 400,000 300,000 580,000 $1,033,000 (1,742,000) $1,033,000 $ 1,900,000