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On January 1, 2017, Panther, Inc, issued securities with a total fair value of $564,000 for 100 percent of Stark Corporation's outstanding ownership shares. Stark

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On January 1, 2017, Panther, Inc, issued securities with a total fair value of $564,000 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 $304,000, the feir value of its trademarks was assessed to be $48,000 more than their carrying amounts. Additionally, Stark's patented technology was undervalued in its accounting records by $212000. The trademarks were considered to have indefinite lives, and the estimated remaining life of the patented technology was eight years. 017, Stark sold Panther inventory costing $67,500 for $135,000. As of December 31, 2017, Panther had resold 61 percent of this inventory In 2018, Panther bought from Stark S143,000 of inventory that had an original cost of $71,500. At the end of 2018, Panther held $38,800 (transfer price) of inventory acquired from Stark, all from its 2018 purchases. During 2018, Panther sold Stark a parcel of land for $89.900 and recorded a gain of S16,300 on the sale. Stark still owes Panther $63,200 (current liability) related to the land sale At the end of 2018, Panther and Stark prepared the following statements in preparation for consolidation. On January 1, 2017, Panther, Inc, issued securities with a total fair value of $564,000 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 $304,000, the feir value of its trademarks was assessed to be $48,000 more than their carrying amounts. Additionally, Stark's patented technology was undervalued in its accounting records by $212000. The trademarks were considered to have indefinite lives, and the estimated remaining life of the patented technology was eight years. 017, Stark sold Panther inventory costing $67,500 for $135,000. As of December 31, 2017, Panther had resold 61 percent of this inventory In 2018, Panther bought from Stark S143,000 of inventory that had an original cost of $71,500. At the end of 2018, Panther held $38,800 (transfer price) of inventory acquired from Stark, all from its 2018 purchases. During 2018, Panther sold Stark a parcel of land for $89.900 and recorded a gain of S16,300 on the sale. Stark still owes Panther $63,200 (current liability) related to the land sale At the end of 2018, Panther and Stark prepared the following statements in preparation for consolidation

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