On January $1,2019,$ Plymouth Corporation acquired $80$ percent of the outstanding voting stock of Sander

Company in exchange for $$1,200,000$ cash. At that time, although Sander's book value was $$925,000,$

Plymouth assessed Sander's total business fair value at $$1,500,000.$ Since that time, Sander has neither

issued nor reacquired any shares of its own stock.

The book values of Sander's individual assets and liabilities approximated their acquisition$-$date fair values

except for the patent account, which was undervalued by $$350,000.$ The undervalued patents had a five$-$year

remaining life at the acquisition date. Any remaining excess fair value was attributed to goodwill. No goodwill

impairments have occurred.

Sander regularly sells inventory to Plymouth. The following are details of the intra$-$entity inventory sales for

the past three years:

Separate financial statements for these two companies as of December $31,2021,$ follow:

a$.$ Prepare a schedule that calculates the Equity in Earnings of Sander account balance.

b$.$ Prepare a worksheet to arrive at consolidated figures for external reporting purposes. At year$-$end, there

are no intra$-$entity payables or receivables.