On January 1, 2020, Panther, Inc., issued securities with a total fair value of $592,000 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 $348,000, the fair value of its trademarks was assessed to be $77,000 more than their carrying amounts. Additionally, Stark's patented technology was undervalued in its accounting records by $167,000. 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 $117,500 for $235,000. As of December 31, 2020, Panther had resold 62 percent of this inventory. In 2021, Panther bought from Stark $184,000 of inventory that had an original cost of $92,000. At the end of 2021, Panther held $49,700 (transfer price) of inventory acquired from Stark, all from its 2021 purchases.

During 2021, Panther sold Stark a parcel of land for $115,800 and recorded a gain of $20,400 on the sale. Stark still owes Panther $79,600 (current liability) related to the land sale.

At the end of 2021, Panther and Stark prepared the following statements for consolidation.

	Panther, Inc.				Stark Corporation
Revenues	$	(911,700	)		$	(403,000	)
Cost of goods sold		392,300				211,400
Other operating expenses		214,700				90,500
Gain on sale of land		(20,400	)			0
Equity in Stark's earnings		(79,625	)			0
Net income	$	(404,725	)		$	(101,100	)
Retained earnings, 1/1/21	$	(381,500	)		$	(328,400	)
Net income		(404,725	)			(101,100	)
Dividends declared		110,600				39,500
Retained earnings, 12/31/21	$	(675,625	)		$	(390,000	)
Cash and receivables	$	150,000			$	202,000
Inventory		456,600				143,600
Investment in Stark		784,400				0
Trademarks		0				75,500
Land, buildings, and equip. (net)		937,800				364,400
Patented technology		0				162,600
Total assets	$	2,328,800			$	948,100
Liabilities	$	(915,075	)		$	(320,700	)
Common stock		(400,000	)			(210,000	)
Additional paid-in capital		(338,100	)			(27,400	)
Retained earnings, 12/31/21		(675,625	)			(390,000	)
Total liabilities and equity	$	(2,328,800	)		$	(948,100	)

Show how Panther computed its $79,625 equity in Stark's earnings balance.

Prepare a 2021 consolidated worksheet for Panther and Stark.