On January 1, 2017, Panther, Inc., issued securities with a total fair value of $588,000 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 $324,000, the fair value of its trademarks was assessed to be $62,000 more than their carrying amounts. Additionally, Stark's patented technology was undervalued in its accounting records by $202,000. The trademarks were considered to have indefinite lives, and the estimated remaining life of the patented technology was eight years In 2017, Stark sold Panther inventory costing $90,000 for $180,000. As of December 31, 2017, Panther had resold 69 percent of this inventory. In 2018, Panther bought from Stark $164,000 of inventory that had an original cost of $82,000. At the end of 2018, Panther held $44,300 (transfer price) of inventory acquired from Stark, all from its 2018 purchases. During 2018, Panther sold Stark a parcel of land for $103,000 and recorded a gain of $18,400 on the sale. Stark still owes Panther $71,600 (current liability) related to the land sale At the end of 2018, Panther and Stark prepared the following statements in preparation for consolidation. Stark Corporation $ (378,000) Panther, Inc. Revenues Cost of goods solod Other operating expenses Gain on sale of land Equity in Stark's earnings $ (820,000) 352, 600 193,000 (18,400) (56,900) $ (349,700) $ (374,500) (349,700) 95,500 $ (628,700) $ 125,000 380,800 728,500 198, 300 84,900 $ (94, 800) $ (307,800) (94,800) 32, 500 $ (370,100) $ 177,000 126,100 Net income Retained earnings 1/1/18 Net income Dividends declared Retained earnings 12/31/18 Cash and receivables Inventory Investment in Stark Trademarks Land, buildings, and equip. (net) Patented technology 66,400 320,500 143,000 $ 833,000 $ (277,450) (155, 000) (30,450) (370,100) $ (833,000) 781,800 $ 2,016,100 Total assets Liabilities Common stock Additional paid-in capital Retained earnings 12/31/18 (668, 300) (400,000) (319,100) (628,700) (2,016,100) $ Total liabilities and equity a. Show how Panther computed its $56,900 equity in Stark's earnings balance b. Prepare a 2018 consolidated worksheet for Panther and Stark