On January $1,2023,$ Panther, Incorporated, issued securities with a total fair value of $$616,000$ 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 $$350,000,$ the fair value of its trademarks was assessed to be $$78,000$ more

than their carrying amounts. Additionally, Stark's patented technology was undervalued in its accounting records by $$188,000.$ The

trademarks were considered to have indefinite lives, and the estimated remaining life of the patented technology was eight years.

In $2023,$ Stark sold Panther inventory costing $$120,000$ for $$240,000.$ As of December $31,2023,$ Panther had resold $77$ percent of this

inventory. In $2024,$ Panther bought from Stark $$187,000$ of inventory that had an original cost of $$93,500.$ At the end of $2024,$ Panther

held $$50,500($transfer price$)$ of inventory acquired from Stark, all from its $2024$ purchases.

During $2024,$ Panther sold Stark a parcel of land for $$117,700$ and recorded a gain of $$20,700$ on the sale. Stark still owes Panther

$$80,800($current liability$)$ related to the land sale.

At the end of $2024,$ Panther and Stark prepared the following statements for consolidation.

Required:

a$.$ Show how Panther computed its $$59,950$ equity in Stark's earnings balance.

b$.$ Prepare a $2024$ consolidated worksheet for Panther and Stark.

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Show how Panther computed its $$59,950$ equity in Stark's earnings balance.