On January 1, 2017, Panther, Inc., issued securities with a total fair value of $577,000 for 100 percent of Stark Corporations 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 Starks book value at the acquisition date was $300,000, the fair value of its trademarks was assessed to be $45,000 more than their carrying amounts. Additionally, Starks patented technology was undervalued in its accounting records by $232,000. 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 $75,000 for $125,000. As of December 31, 2017, Panther had resold 74 percent of this inventory. In 2018, Panther bought from Stark $140,000 of inventory that had an original cost of $70,000. At the end of 2018, Panther held $38,000 (transfer price) of inventory acquired from Stark, all from its 2018 purchases. Page 258During 2018, Panther sold Stark a parcel of land for $88,000 and recorded a gain of $16,000 on the sale. Stark still owes Panther $62,000 (current liability) related to the land sale. At the end of 2018, Panther and Stark prepared the following statements in preparation for consolidation. Panther, Inc. Stark Corporation Revenues $ (710,000) $ (360,000) Cost of goods sold 305,000 189,000 Other operating expenses 167,000 81,000 Gain on sale of land (16,000) 0 Equity in Starks earnings (39,000) 0 Net income $ (293,000) $ (90,000) Retained earnings, 1/1/18 $ (367,000) $ (292,000) Net income (293,000) (90,000) Dividends declared 80,000 25,000 Retained earnings, 12/31/18 $ (580,000) $(357,000) Cash and receivables $ 102,000 $ 154,000 Inventory 311,000 110,000 Investment in Stark 691,000 0 Trademarks 0 58,000 Land, buildings, and equip. (net) 638,000 280,000 Patented technology 0 125,000 Total assets $ 1,742,000 $ 727,000 Liabilities $ (462,000) $ (220,000) Common stock (400,000) (100,000) Additional paid-in capital (300,000) (50,000) Retained earnings, 12/31/18 (580,000) (357,000) Total liabilities and equity $(1,742,000) $ (727,000) Show how Panther computed its $39,000 equity in Starks earnings balance. Prepare a 2018 consolidated worksheet for Panther and Stark.