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On January 1, 2020, Panther, Inc, Issued securities with a total fair value of $588,000 for 100 percent of Stark Corporation's outstanding ownership shares Stark

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On January 1, 2020, Panther, Inc, Issued securities with a total fair value of $588,000 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 $322,000, the fair value of its trademarks was assessed to be $60,000 more than their carrying amounts. Additionally, Stark's patented technology was undervalued in its accounting records by $206,000. 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 $87.500 for $175,000. As of December 31, 2020, Panther had resold 80 percent of this Inventory. In 2021. Panther bought from Stark $162,000 of Inventory that had an original cost of $81000. At the end of 2021. Panther held $43.800 (transfer prices of inventory acquired from Stark, all from its 2021 purchases. During 2021, Panther sold Stark a parcel of land for $101,800 and recorded a gain of $18,200 on the sale Stark still owes Panther $70,800 (current liability) related to the land sale At the end of 2021, Panther and Stark prepared the following statements for consolidation Stark Corporation 5 (375.000) 196, 7ee 84,200 avenues Cost of goods sold Other operating expenses Gio sale of land Louity in Sant's wings Net Inco Retained earnings, 1/1/21 Net Income Dividends declared Retained warnings, 12/31/21 Cash and receivables Inventory trent in Start Trademarks Land, buildings and equip (mt) Patted technology Totalt Labatt Common stock tal pain capital Metained, 12/11/21 Total silities and equity Panther, Inc. (810, 800) 348,60 190.000 (18,200 (45,250) 5 (335,350) 5 (373,500) (315,350) 91,600 $ (617,250) $ 120,000 177. 736,100 $(94,100 $ (305,500) (941) 12.099 3 (167, 5 176,000 125,400 775.00 5 5 2,01), 500 (79.450) (600.00 (116) 66. 31. 143,200 5 2.200 5 (266,500) (150.000 (44,100 (166 $2.00) 5 (201),500) eShow how Panther computed ts $45.750 equity in Stark's earnings balance b. Prepare a 2021 consolidated worksheet for Panther and Stark a. Show how Panther computed Its $45,750 equity In Stark's earnings balance. b. Prepare a 2021 consolidated worksheet for Panther and Stark Complete this question by entering your answers in the tabs below. Required A Required B Show how Panther computed its $45,750 equity in Stark's earnings balance. (input all amounts as positive values.) Equity in Sans earnings Required B > Complete this question by entering your answers in the tabs below. Required A Requiredte Prepare a 2021 consolidated worksheet for Panther and Stark. (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 PANTHER AND STARK Consolidation Worksheet For the Year Ending December 31, 2021 Consolidation Entries Accounts Panther Stark Debit Credit Consolidated Totals Revenues Cost of goods sold Other operating expenses Gain on sale of land Equity in Stars earnings Net income Retained earnings 1/1/21 Net income Olvidends declared Retained earnings 12/31/21 Cash and receivables Inventory Investment in Stars Trademaria Land buildings and equipment (net) Patented technology Total Liabilities Common stock Additional pain capital Retained emings 120121 To be and equity 5 (810.800) S (375.000) 348.600 190,700 190,800 84.200 (18.200) 0 (45.750) 0 5 (335,35035 (94.100) 3 (373.500) 5 (305,500) (335,350) (94.100) 01.000 32.000 5617.250) $ (367 600) $ 124.000 175.000 377.800 125.400 736.100 0 0 08.000 775.000 318.000 0 142 200 $ 2.013.500 $ 328.200 $ (670.450 5 (205.500) (400.000 (150.000) (316,500) 144.100) 017-250) (387.600) $12.013.500) $828.2001 $

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