On January 1, 2016, 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. Below are details of the intra-entity inventory sales for the past three years: Intra-Entity on Intra-Entity Intra-EntityEnding Inventory Inventory 2016 2017 2018 s 125, 000 220,000 300,000 $ 80,000 125,000 160,000 Separate financial statements for these two companies as of December 31. 2018, follow: (950,000) 500,000 85,000 120,000 $(1,740, 000) Cost of goods sold Depreciation expense 820,000 104,000 220,000 20,000 squity in earnings of Sander $ (700,000)(230,000) $(2,800,000)$345,000) (230,000) Net incone earnings 1/1/18 (700,000 Dividends declared 25,000 $ (3,300,000) $535,000 575,000 990,000 1,420,000 1,025,000 950,000 5,495,000 (550,000) $115,000 215,000 800,000 Inventory Investnent in Sander 863,000 107,000 2,100,000 (450,000)(200,000 Aecounts payable (545,000) 900,000) (300,000 (450,000) (800.000) (100,000) 550.000 Coamon stock (3.300.000) $ (5,495,000)$(2,100.000) 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 recelvables Complete this question by entering your answers in the tabs below Prepare a schedule that calculates the Equity in Earnings of Sander account balance. 2018 in Recognized gross profit for 1/1/18 intra-entity inventory To non interest