Need help solving

On January 1, 2017, Panther, Inc., issued securities with a total fair value of $569.000 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 $329,000, the fair value of its trademarks was assessed to be $64,000 more than their carrying amounts. Additionally. Stark's patented technology was undervalued in its accounting records by $176,000. The trademarks were considered to have indefinite lives, and the estimated remaining life of the patented technology was eight years In 2017, Stark sold Panther inventory costing $95,000 for $190,000. As of December 31, 2017, Panther had resold 74 percent of this inventory. In 2018, Panther bought from Stark $167.000 of inventory that had an original cost of $83,500. At the end of 2018, Panther held $45.100 (transfer price) of inventory acquired from Stark, all from its 2018 purchases During 2018, Panther sold Stark a parcel of land for $104,900 and recorded a gain of $18.700 on the sale. Stark still owes Panther $72,800 (current liability) related to the land sale At the end of 2018, Panther and Stark prepared the following statements in preparation for consolidation Stark Corporation $ (383,000) 209,900 86,000 Revenues Cost of goods sold Other operating expenses Gain on sale of land Equity in Stark's earnings Net income Retained earnings 1/1/18 Net income Dividends declared Retained earnings 12/31/18 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 12/31/18 Total liabilities and equity Panther, Inc. (833,800) 358,600 196,300 (18,700) (57,550) (355,150) (376,000) (355, 150) 97.000 (634,150) 129,000 392,900 719,000 $ (96,180) 5 (312,000) (96,100) 34.500 $ (373,600) $ 181,000 128,900 806,700 2,047,600 (590,550) (400,000 (322,900) (634,150) (2,047,600) 67,900 327,790 146,200 851,700 (287,450) (165,000) (25,650 (373,600 $ (851,700) o. Show how Panther computed its $57550 equity in Stark's earnings balance. b. Prepare a 2018 consolidated worksheet for Panther and Stark Complete this question by entering your answers in the tabs below. Required A Required B Show how Panther computed its $57,550 equity in Stark's earnings balance. Equity in Stark's earnings Required B > Accounts Consolidated Totals Revenues Cost of goods sold Other operating expenses Gain on sale of land Equity in Stark's earnings Net Income Retained earnings 1/1 Net Income (above) Dividends declared Retained earnings 12/31 Cash and receivables Inventory Investment in Stark Trademarks Land buildings and equipment (net) Patented technology PANTHER AND STARK Consolidation Worksheet Year Ending December 31, 2018 Consolidation Entries Panther Stark Debit Credit 5 (833 800) 5 (383.000) 358,600 200.900 196.300 86.000 (18,700) (57,550) 5 (355.150) S (96.100) 5 (376,000) $ (312.000) (355. 150) 96 100) 97.000 34.500 $ (634.150) S (373.600) $ 129.000 5 181.0001 392,900 128,9001 719,000 67.900 806 700 327.700 146 2001 T L P u operdry expenses Gain on sale of land Equity in Stark's earnings Net Income Retained earnings 1/1 Net income (above) Dividends declared Retained earnings 12/31 Cash and receivables Inventory Investment in Stark Trademarks Land, buildings, and equipment (net) Patented technology Total assets Llabilities Common stock Additional pald-in capital Retained earnings (above) Total liabilities & stockholders' equity 190.JUU 00.00 (18,700) 01 (57,550) O $ (355,150) S (96, 100) $ (376,000) $ (312,000) (355, 150) (96,100) | 97,000 34,500 $ (634.150) $ (373.600) $ 129,000 $ 181,000 392.900 128.900 719,000 of 0 67.900 806,700 327.700 0 146,2007 $ 2.047 600 5 851.700 (690,550) $ (287.450) (400 000) (165,000) (322900) (25.650) (634. 150) (373 600) $ 2.047.600) S (851.700)