On January 1, 2020, Panther, Inc., issued securities with a total fair value of $585,000 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 $327,000, the fair value of its trademarks was assessed to be 563,000 more than their carrying amounts Additionally, Stark's patented technology was undervalued in its accounting records by $195,000. The trademarks were considered to have indefinite lives, and the estimated remaining life of the patented technology was eight years. In 2020, Stark sold Panther inventory costing $92,500 for $185,000. As of December 31, 2020. Panther had resold 79 percent of this inventory In 2021. Panther bought from Stark $166,000 of inventory that had an original cost of $83,000. At the end of 2021, Panther held $44.800 (transfer prices of inventory acquired from Stark, all from its 2021 purchases. During 2021, Panther sold Stark a parcel of land for $104,200 and recorded a gain of S18,600 on the sale. Stark still owes Panther $72,400 (current liability related to the land sale. At the end of 2021. Panther and Stark prepared the following statements for consolidation, Stark Corporation 5 (381,000) 199,900 85,600 Panther, Inc. $ (829,200) 356,600 195,200 (18,600) (49.550) 5 (345,550) 5 (375,000) (345,550) 96,400 $ (626,150) 5 126,000 383,000 723,090 Revenues Cost of goods sold Other operating expenses Gain on sale of land Equity in Stark's earnings Net Income Retained earnings, 1/1/21 Net Income Dividends declared Retained earning, 12/31/21 Cash and receivables Inventory Investisent in Stark Trademarks Land, buildings, and equip. (net) Patented technology Total assets Liabilities Common Stock Additional paid in capital Retained earnings, 12/91/21 Total liabilities and equity 5 (95,500) $(310,100 (95,500 $ (372,100) $ 180,000 128.200 755,000 $ 2,000,00 (673,250) (400,000) (321,400) 626150) $(2,020,000) 57,500 325,00 145.400 $ 46,900 5 (292,150) (160,000) (22,650) (372,100 $ (646,100) Required B Prepare a 2021 consolidated worksheet for Panther and Stark. (For accounts where multiple consolidation entries are req combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine credit entries into one amount and enter this amount in the credit column of the worksheet. Input all amounts as positive values.) Consolidated Totals PANTHER AND STARK Consolidation Worksheet For the Year Ending December 31, 2021 Consolidation Entries Accounts Panther Stark Debit Credit Revenues $ (829,200) $ (381000) Cost of goods sold 356,600 199.900 Other operating expenses 195 200 85,600 Gain on sale of land (18.600) 0 Equity in Stark's earnings (49,550) 0 Net income $ (345,550) 5 (95,500) Retained earnings 1/1/21 5 (375,000) $ (310,100) Net income (345,550) (95,500) Dividends declared 94 400 33,500 Retained earnings 12/31/21 5 (626,150) S (372.100) Cash and receivables 5 126,000 $ 180,000 Inventory 383,800 128,200 Investment in Stark 723,000 0 Trademarks 0 67,500 Land buildings, and equipment (net) 788.000 325,800 Patented technology 0 145,400 Total assets $ 2,020,800 $ 846,900 Liabilities $ (673.250) $ (292,150) Common stock (400,000) (160,000) Additional pald-in capital (321 400) (22 650) Retained earnings 12/31/21 (626 150) (372.100) Total liabilities and equity 5 (2,020,800) 5 (846.900)