On January | 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 S199,000. 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 $41700 (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 $17400 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 Stark Panther, Inc. Corporation (774,100) $ (368,080) Cost of goods sold 332,700 193, 100 Other operating expenses 182,100 (17,400) Equity in Stark's earnings Net Income (332, 125) (92,200) Retained earnings, 1/1/21 (371,000) $ (299,300) (332,125) (92, 200) Dividends declared 90,700 Revenues $ 82,700 0 Gain on sale of land (55,425) $ $ $ Net income 29,500 $ (332,125) 90,700 (612,425) 117,000 356,600 718,000 (92,200) 29,500 $ (362,008) $ 169,000 120,500 $ Net income Dividends declared Retained earnings, 12/31/21 Cash and receivables Inventory Investment in Stark Trademarks Land, buildings, and equip. (net) Patented technology Total assets Liabilities Common stock Additional paid-in capital Retained earnings, 12/31/21 Total liabilities and equity 731,900 @ $ 1,923,500 $ (600,375) (400,000) (310,700) (612,425) $ (1,923,500) 63,400 306,100 136,700 $ 795,700 $ (241,700) (130,000) (62,080) (362,000) $ (795,700) a. Show how Panther computed its $55,425 equity in Stark's earnings balance. b. Prepare a 2021 consolidated worksheet for Panther and Stark