On January 1, 2017, Panther, Inc., issued securities with a total fair value of $569,000 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 $329,000, the fair value of its trademarks was assessed to be $64,000 more than their carrying amounts. Additionally, Stark's patented technology was undervalued in its accounting records by $176,000. 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 $95,000 for $190,000. As of December 31, 2017, Panther had resold 74 percent of this inventory. In 2018, Panther bought from Stark $167,000 of inventory that had an original cost of $83,500. At the end of 2018, Panther held $45,100 (transfer price) of inventory acquired from Stark, all from its 2018 purchases.

During 2018, Panther sold Stark a parcel of land for $104,900 and recorded a gain of $18,700 on the sale. Stark still owes Panther $72,800 (current liability) related to the land sale.

At the end of 2018, Panther and Stark prepared the following statements in preparation for consolidation.

Culori 29 West General Normal Bad Good Paste La Copy Format Painter BIU B- A- Merge Center $ % Conditional Formatas Neutral Formatting Table Calculation Check Cell Chipboard Font Ale Nube Style 021 D 1 1 $ Credit Consolidated Totals B C 16 Panther in Stark Corp 17 Revenues (823,800 $(383,000) 18 Cost of goods Sold $ 358,600 $ 200,100 19 Other Operating Expenses $ 196,300 $ 36,000 20 Gain on Sale of Land $ (18,700) 21 Equity in Stark's Earnings $ (57,550) $ 22 Net Income $ (355, 150) $ 196,100) 23 Retained Earnings 1/1/18 $ (376,000) $(312.000) 24 Net Income $ (355,150) $ 96,100) 25 Dividends Declared $ 97,000$ 34,500 26 Retained Earnings 12/31/18 S 1634,1505373,600 27 Cash and Receivables $ 129,000 $ 181,000 28 Inventory $ 392,900 $ 120.000 29 Investment in Stark $ 719,000 $ 30 Trademarks $ $ 67,00 31 Land, Buildings, and Equip(net) $ 306,200 $ 329,700 32 Patented Technology $ $ 146,200 3 Total Assets S 2,047,600 S51,00 34 Liabilities S (60,550 $287.450) 35 Common Stock $ (400,000) $105,000 36 Additional Paid in Capital $ (322,500) S (25,650) 37 Retained Earnings 12/31/18 $ (614,150) 573,600) 38 Total Liabilities and Equity S 12.047.600) $1851,700) 39 40 ) Prepare a 2018 consolidated worksheet for Panther and stark 41 E F G H Panther and stark Consolidation Worksheet Year Ending December 31, 2018 Accounts Panther Stark Debit Revenues $ (833,00 S (183,000) cost of Goods Sold S258.600 IS200,900 Other Operating Expenses $ 196,3005 86,000 Gain on sale of land S (1,700 Foulty in stark earnings $57,550) Net Income (155,150 $ (96 100) Reatined Earnings 1/1 $ (376.000) $ (312.000 Net Income bove $355,150 $ 19.100 Dividens declared S 97.000 M.500 Retained Earnings 12/31 S (6M, 150 373,600) Cash and Reivables S 125,000 5 11.000 Inventory S 192.000 6 12. Inwestment in a S 719,000 Trademarks S $ 67.900 Land, Building and lime 1.200 1127,00 Patented Technology S 146200 Total Assets $ 2,042,000 Labilities SOSSENSO Common Stock S (400.000,00) Additional Paid in capital S225,650) Retained Emines above S (634.150 Total abilities and Stockhol 2.017.600 1851,700) 225500 5