On January $1,2020,$ Panther, Inc., Issued securitles with a total falr value of $$605,000$ for $100$ percent of Stark Corporation's 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.$)$

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$\backslash$table$[[$PANTHER AND STARK$],[$Consolidation Worksheet$],[$For the Year Ending December $31,2021],[,$Panther,Stark,Consolidation Entries,$\backslash$table$[[$Consolidated$],[$Totals$]]],[$Accounts$,$Debit,Credit$],[$Revenues$,$$$(870,500),$$$(395,000),,,],[$Cost of goods sold,$374,500,207,300,,,],[$Other operating expenses,$205,000,88,800,,,],[$Gain on sale of land,$(19,500),0,,,],[$Equity in Stark's earnings,$(61,500),0,,,],[$Net income,$$,(372,000),$S$,(98,900),,,],[$Retained earnings $1/1/21,$$$(378,000),$$$(321,200),,,],[$Net income,$(372,000),(98,900),,,],[$Dividends declared,$101,600,37,000,,,],[$Retained earnings $12/31/21,$$$(648,400),$$$(383,100),,,],[$Cash and receivables,$$,138,000,$$$,190,000,,,],[$Inventory$,420,200,135,200,,,],[$Investment in Stark,$770,700,0,,,],[$Trademarks$,0,71,200,,,],[$Land$,$ buildings, and equipment $($net$),862,900,343,600,,,],[$Patented technology,$0,153,300,,,],[$Total assets,$$2,191,800,\backslash$table$[[,893,300]],,,],[$Liabilities$,$$$(812,900),$$$(298,000),,,],[$Common stock,$(400,000),(185,000),,,],[$Additional paid$-$in capital,$(330,500),(27,200),,,],[$Retained earnings $12/31/21,(648,400),(383,100),,,],[$Total liabilities and equity,$$(2,191,800),$$$,(893,300),$$$,$$$,]]$

outstanding ownership shares. Stark has long supplied Inventory to Panther. The companles expect to achleve synergles with

production scheduling and product development with this combination.

Although Stark's book value at the acquisition date was $$337,000,$ the fair value of Its trademarks was assessed to be $$70,000$ more

than thelr carrying amounts. Additionally, Stark's patented technology was undervalued in its accounting records by $$198,000.$ 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 $$105,000$ for $$210,000.$ As of December $31,2020,$ Panther had resold $71$ percent of this

Inventory. In $2021,$ Panther bought from Stark $$175,000$ of Inventory that had an original cost of $$87,500.$ At the end of $2021,$ Panther

held $$47,200($transfer price$)$ of Inventory acquired from Stark, all from Its $2021$ purchases.

During $2021,$ Panther sold Stark a parcel of land for $$109,900$ and recorded a galn of $$19,500$ on the sale. Stark still owes Panther

$$76,000($current llability$)$ 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 $$61,500$ equity in Stark's earnings balance.

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

Complete this question by entering your answers in the tabs below.

Show how Panther computed its $$61,500$ equity in Stark's earnings balance. $($Input all amounts as positive values.$)$