Pavin acquires all of Stabler's outstanding shares on January 1, 2018, for $460,000 in cash. Of this amount, $30,000 was attributed to equipment with a 10-year remaining life and $40,000 was assigned to trademarks expensed over a 20-year period. Pavin applies the partial equity method so that income is accrued each period based solely on the earnings reported by the subsidiary. On January 1, 2021, Pavin reports $300,000 in bonds outstanding with a carrying amount of $282,000. Stabler purchases half of these bonds on the open market for $145,500. During 2021, Pavin begins to sell merchandise to Stabler. During that year, inventory costing $80,000 was transferred at a price of $100,000. All but $10,000 (at sales price) of these goods were resold to outside parties by year-end. Stabler still owes $33,000 for inventory shipped from Pavin during December. The following financial figures are for the two companies for the year ending December 31, 2021. Dividends were both declared and paid during the current year. $ Pavin (740,000) 455,000 125,000 36,000 Stabler $ (505,000) 240,000 158,500 Revenues Cost of goods sold Expenses Interest expense-bonds Interest income-bond investment Loss on extinguishment of bonds Equity in Stabler's income Net income Retained earnings, 1/1/21 (16,500) 9 $ $ (123, 000) (247,000) (345,000) $ (123,000) $ (361,000) . --- 36,000 0 $ $ LANCHES Interest expense-bonds Interest income-bond investment Loss on extinguishment of bonds Equity in Stabler's income Net income Retained earnings, 1/1/21 Net income (above) Dividends declared Retained earnings, 12/31/21 Cash and receivables Inventory Investment in Stabler Investment in Pavin bonds Land, buildings, and equipment (net) Trademarks Total assets Accounts payable Bonds payable Discount on bonds Common stock Retained earnings (above) Total liabilities and stockholders' equity (123, 000) (247, 000) (345,000) (247,000) 155,000 (437,000) 217,000 175,000 613,000 (16,500) 0 @ $ (123,000) $ (361,000) (123,000) 61,000 $ (423,000) $ 35,000 87,000 $ $ 147,000 541,000 245,000 $ 1,250,000 $ (225,000) (300,000) 12,000 (300,000) (437,000) $ (1,250,000) $ 810,000 $ (167,000) (100,000) @ (120,000) (423,000) $ (810,000) Prepare a worksheet to produce consolidated balances. (For accounts where multiple consolidation entries are requ all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine al into one amount and enter this amount in the credit column of the worksheet. Input all amounts as positive values.) PAVIN AND STABLER Consolidation Worksheet For Year Ending December 31, 2021 Consolidation Entries Debit Credit Consolidated Totals Accounts Revenues $ Cost of goods sold Expenses Interest expense-bonds Interest income bond investment Loss on extinguishment of bonds Equity in Stabler's income Net income Retained earnings, 1/1/21 (Pavin) Retained earings, 1/1/21 (Stabler) Net income Pavin Stabler 740,000 $ 505,000 455,000 240,000 125,000 158,500 36,000 0 0 16,500 0 0 123,000 0 247,000 $ 123,000 345,000 361,000 247.000 123.0001 $ $ 0 Equity in Stabler's income 0 Net income $ 123,000 247,000 $ 345,000 123,000 $ 0 Retained earnings, 1/1/21 (Pavin) Retained earnings, 1/1/21 (Stabler) Net income Dividends declared $ 361,000 123,000 61,000 423,000 35,000 87,000 $ Retained earnings, 12/31/21 Cash and receivables 0 247,000 155,000 437,000 $ 217,000 $ 175,000 613,000 $ 0 0 147,000 541,000 245,000 Inventory Investment in Stabler Investment in Pavin bonds Land, buildings, and equipment (net) Trademarks Total assets Accounts payable Bonds payable Discount on bonds Common stock 0 0 $ 810,000 $ 0 167,000 100,000 1,250,000 $ 225,000 300,000 12,000 300,000 437,000 0 120,000 Retained earnings 423,000 0