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: Separate financial statements for these two companies as of December 31, 2021, follow: 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. \begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{9}{|c|}{ PLYMOUTH AND SANDER } \\ \hline \multicolumn{9}{|c|}{ Consolidation Worksheet } \\ \hline \multicolumn{9}{|c|}{ For Year Ending December 31, 2021} \\ \hline & \multirow{2}{*}{\multicolumn{2}{|c|}{ Plymouth }} & \multirow{2}{*}{\multicolumn{2}{|c|}{ Sander }} & \multicolumn{2}{|c|}{ Consolidation Entries } & \multirow{3}{*}{NCl} & \multirow[b]{2}{*}{ConsolidatedTotals} \\ \hline Accounts & & & & & Debit & Credit & & \\ \hline Revenues & $ & (1,740,000) & $ & (950,000) & & & & \\ \hline Cost of goods sold & & 820,000 & & 500,000 & & & & \\ \hline Depreciation expense & & 104,000 & & 85,000 & & & & \\ \hline Amortization expense & & 220,000 & & 120,000 & & & & \\ \hline Interest expense & & 20,000 & & 15,000 & & & & \\ \hline Equity in earnings of Sander & & (124,000) & & 0 & & & & \\ \hline Separate company net income & $ & (700,000) & $ & (230,000) & & & & \\ \hline \multicolumn{9}{|l|}{ Consolidated net income } \\ \hline \multicolumn{9}{|l|}{ To noncontrolling interest } \\ \hline \multicolumn{9}{|l|}{ To Plymouth Corp. } \\ \hline Retained earnings 1/1/21 & $ & (2,800,000) & $ & (345,000) & & & & \\ \hline Net income & & (700,000) & & (230,000) & & & & \\ \hline Dividends declared & & 200,000 & & 25,000 & & & & \\ \hline Retained earnings 12/31/21 & $ & (3,300,000) & $ & (550,000) & & & & \\ \hline Cash & $ & 535,000 & $ & 115,000 & & & & \\ \hline Accounts receivable & & 575,000 & & 215,000 & & & & \\ \hline Inventory & & 990,000 & & 800,000 & & & & \\ \hline Investment in Sander & & 1,420,000 & & & & & & \\ \hline Buildings and equipment & & 1,025,000 & & 863,000 & & & & \\ \hline Patents & & 950,000 & & 107,000 & & & & \\ \hline \multicolumn{9}{|l|}{ Goodwill } \\ \hline Total assets & $ & 5,495,000 & $ & 2,100,000 & & & & \\ \hline Accounts payable & $ & (450,000) & $ & (200,000) & & & & \\ \hline Notes payable & & (545,000) & & (450,000) & & & & \\ \hline \multicolumn{9}{|l|}{ Noncontrolling interest 1/1/21 } \\ \hline \multicolumn{9}{|l|}{ Noncontrolling interest 12/31/21 } \\ \hline Common stock & & (900,000) & & (800,000) & & & & \\ \hline Additional paid-in capital & & (300,000) & & (100,000) & & & & \\ \hline Retained earnings 12/31/21 & & (3,300,000) & & (550,000) & & & & \\ \hline Total liabilities and stockholders' equity & $ & (5,495,000) & $ & (2,100,000) & $ & $ & & \\ \hline \end{tabular}