On January 1, 2019. 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. The following are details of the Intra-entity Inventory sales for the past three years: Gross Profit Rate Intra-Entity on Intra-Entity Intra-Entity Ending Inventory Inventory at Transfer Price Transfers $ 125,000 $ 80,000 25% 2020 220, eee 125,00 28 388,eee 160,880 25 Sales Year 2019 2821 Separate financial statements for these two companies as of December 31, 2021, follow: Sander $ (950,00) 588,888 85,880 120,880 15,880 Revenues Cost of goods sold Depreciation expense Amortization expense Interest expense Equity in earnings of Sander Net Income Retained earnings 1/1/21 Net income Dividends declared Retained earnings 12/31/21 Cash Accounts receivable Inventory Investment in Sander Buildings and equipent Patents Total assets Accounts payable Notes payable Connon stock Additional paid-in capital Retained earnings 12/31/21 Total liabilities and stockholders' equity Plymouth $(1,740,880) 820,00 184,000 220,880 20,880 (124,889) $ (780,000) $(2,888,880) (780,880) 280,880 $(3,380,880) $ 535,880 575.000 990,880 1,420,000 1,025,000 950,880 $ 5,495,000 $ (450,880) (545,880) (980,000) (388,880) (3,380,000) $(5,495,880) $ (230,000) $ (345,eee) (23,880) 25,880 $ (550, eee) $ 115.680 215,000 888,888 863,00 187,880 $ 2,100,00 $ (280,000) (452,680) (880,000) (180,00) (558,680) $(2,180,00) 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 receivables. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a schedule that calculates the Equity in Earnings of Sander account balance. 2021 income reported by Sander Excess patent fair value amortization Deferred gross profit for 12/31/21 intra-entity inventory Recognized gross profit for 1/1/21 intra-entity inventory Sander's net income adjusted To controlling interest To non controlling interest Paain_1 Complete this question by entering your answers in the tabs below. Required A Required B Prepare a worksheet to arrive at consolidated figures for external reporting purposes. At year-end, there are no intra-entity payables or receivables. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Input all amounts as positive values.) Show less Accounts NCI Consolidated Totals PLYMOUTH AND SANDER Consolidation Worksheet For Year Ending December 31, 2021 Consolidation Entries Plymouth Sander Debit Credit $ (1.740,000) s (950,000) 820,000 500,000 104.000 85,000 220,000 120,000 20,000 15,000 (124.000) 0 $ (700,000)| $ (230,000) $ $ Revenues Cost of goods sold Depreciation expense Amortization expense Interest expense Equity in earnings of Sander Separate company net income Consolidated net income To noncontrolling interest To Plymouth Corp. Retained earnings 1/1/21 Net income Dividends declared Retained earnings 12/31/21 Cash Accounts receivable Inventory Investment in Sander Buildings and equipment Patents Goodwill Total assets Accounts payable Notes payable Noncontrolling interest 11/21 Noncontrolling interest 12/31/21 Common stock Additional paid-in capital Retained earnings 12/31/21 Total liabilities and stockholders' equity (2.800,000 $ (700,000) 200,000 (3.300,000 $ 535,000 $ 575,000 990,000 1,420,000 1,025,000 950,000 (345,000) (230,000) 25,000 (550,000) 115,000 215,000 800,000 883,000 107.000 $ $ 5,495,000 $ (450,000) $ (545,000) 2,100,000 (200,000) (450,000) (900,000) (300,000) (3.300,000) (5.495,000) $ (800,000) (100,000) (550,000) (2.100,000) $ $ 0 $