On January $1,2020,$ Panther, Inc., issued securities with a total fair value of $$593,000$ 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 $$317,000,$ the fair value of its trademarks was assessed to be $$57,000$ more than their carrying amounts. Additionally, Stark's patented technology was undervalued in its accounting records by $$219,000.$ 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 $$82,500$ for $$165,000.$ As of December $31,2020,$ Panther had resold $68$ percent of this inventory. In $2021,$ Panther bought from Stark $$159,000$ of inventory that had an original cost of $$79,500.$ At the end of $2021,$ Panther held $$43,000($transfer price$)$ of inventory acquired from Stark, all from its $2021$ purchases.

During $2021,$ Panther sold Stark a parcel of land for $$99,900$ and recorded a gain of $$17,900$ on the sale. Stark still owes Panther $$69,600($current liability$)$ related to the land sale.

At the end of $2021,$ Panther and Stark prepared the following statements for consolidation.

Panther, Inc. Stark Corporation

Revenues $ $(797,000)$ $ $(373,000)$

Cost of goods sold $342,600195,700$

Other operating expenses $187,50083,800$

Gain on sale of land $(17,900)0$

Equity in Stark's earnings $(53,125)0$

Net income $ $(337,925)$ $ $(93,500)$

Retained earnings, $1/1/21$ $ $(372,000)$ $ $(303,500)$

Net income $(337,925)(93,500)$

Dividends declared $92,30030,500$

Retained earnings, $12/31/21$ $ $(617,625)$ $ $(366,500)$

Cash and receivables $ $121,000$ $ $173,000$

Inventory $368,700123,300$

Investment in Stark $744,3000$

Trademarks $064,900$

Land, buildings, and equip. $($net$)756,800313,300$

Patented technology $0139,900$

Total assets $ $1,990,800$ $ $814,400$

Liabilities $ $(660,175)$ $ $(251,950)$

Common stock $(400,000)(140,000)$

Additional paid$-$in capital $(313,000)(55,950)$

Retained earnings, $12/31/21(617,625)(366,500)$

Total liabilities and equity $ $(1,990,800)$ $ $(814,400)$

Show how Panther computed its $$53,125$ equity in Stark's earnings balance.

Prepare a $2021$ consolidated worksheet for Panther and Stark.