On January 1, 2020, Panther, Inc., issued securities with a total fair value of $564,000 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 $312,000, the fair value of its trademarks was assessed to be $53,000 more than their carrying amounts. Additionally, Stark's patented technology was undervalued in its accounting records by $199,000. 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 $77,500 for $155,000. As of December 31, 2020, Panther had resold 66 percent of this inventory. In 2021, Panther bought from Stark $154,000 of inventory that had an original cost of $77,000. At the end of 2021 , Panther held $41,700 (transfer price) of inventory acquired from Stark, all from its 2021 purchases. During 2021, Panther sold Stark a parcel of land for $96,800 and recorded a gain of $17,400 on the sale. Stark still owes Panther $67,600 (current liability) related to the land sale. At the end of 2021, Panther and Stark prepared the following statements for consolidation. Complete this question by entering your answers in the tabs below. a. Show how Panther computed its $55,425 equity in Stark's earnings balance. b. Prepare a 2021 consolidated worksheet for Panther and Stark. \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline \multirow[b]{2}{*}{ Accounts } & \multirow{2}{*}{\multicolumn{2}{|c|}{ Panther }} & \multirow{2}{*}{\multicolumn{2}{|c|}{ Stark }} & \multicolumn{2}{|c|}{ Consolation Entries } & \multirow[b]{2}{*}{ConsolidatedTotals} \\ \hline & & & & & Debit & Credit & \\ \hline Revenues & $ & (774,100) & $ & (368,000) & & & \\ \hline Cost of goods sold & & 332,700 & & 193,100 & & & \\ \hline Other operating expenses & & 182,100 & & 82,700 & & & \\ \hline Gain on sale of land & & (17,400) & & 0 & & & \\ \hline Equity in Stark's earnings & & (55,425) & & 0 & & & \\ \hline Net income & $ & (332,125) & $ & (92,200) & & & \\ \hline Retained earnings 1/1/21 & $ & (371,000) & $ & (299,300) & & & \\ \hline Net income & & (332,125) & & (92,200) & & & \\ \hline Dividends declared & & 90,700 & & 29,500 & & & \\ \hline Retained earnings 12/31/21 & $ & (612,425) & $ & (362,000) & & & \\ \hline Cash and receivables & $ & 117,000 & $ & 169,000 & & & \\ \hline Inventory & & 356,600 & & 120,500 & & & \\ \hline Investment in Stark & & 718,000 & & 0 & & & \\ \hline Trademarks & & 0 & & 63,400 & & & \\ \hline Land, buildings, and equipment (net) & & 731,900 & & 306,100 & & & \\ \hline Patented technology & & 0 & & 136,700 & & & \\ \hline Total assets & $ & 1,923,500 & $ & 795,700 & & & \\ \hline Liabilities & $ & (600,375) & $ & (241,700) & & & \\ \hline Common stock & & (400,000) & & (130,000) & & & \\ \hline Additional paid-in capital & & (310,700) & & (62,000) & & & \\ \hline Retained earnings 12/31/21 & & (612,425) & & (362,000) & & & \\ \hline Total liabilities and equitv & & 1,923,500) & $ & (795,700) & 0 & $ & \\ \hline \end{tabular}