Pavin acquires all of Stabler's outstanding shares on January 1, 2018, for $470,000 in cash. Of this amount, $31,000 was attributed to equipment with a 5-year remaining life and $41,000 was assigned to trademarks expensed over a 10-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 $310,000 in bonds outstanding with a carrying amount of $291,600. Stabler purchases half of these bonds on the open market for $150,400. During 2021, Pavin begins to sell merchandise to Stabler. During that year, inventory costing $79,000 was transferred at a price of $100,000. All but $11,000 (at sales price) of these goods were resold to outside parties by year-end. Stabler still owes $34,000 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. Revenues Cost of goods sold Expenses $ Pavin (743,000) 456,000 126,000 Stabler $ (507,000) 241,000 159,500 Interest expense-bonds Interest income-bond investment 37,000 0 (17,150) Loss on extinguishment of bonds 0 0 Equity in Stabler's income (123,650) 0 Net income Retained earnings, 1/1/21 Net income (above) Dividends declared $ (247,650) $ (123,650) $ (346,000) $ (363,000) (247,650) 156,000 (123,650) 66,000 Retained earnings, 12/31/21 $ (437,650) $ (420,650) Cash and receivables Inventory 218,000 $ 36,000 176,000 88,000 Investment in Stabler 613,650 Investment in Pavin bonds 0 151,750 Land, buildings, and equipment (net) 246,000 Trademarks 0 542,000 0 Total assets $ 1,253,650 $ 817,750 Common stock Accounts payable Bonds payable Discount on bonds Retained earnings (above) Total liabilities and stockholders' equity Note: Credits are indicated by parentheses. Prepare a worksheet to produce consolidated balances. (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.) $ (209,000) $ (310,000) (175,100) (101,000) 13,000 (310,000) 0 (437,650) (121,000) (420,650) $ (1,253,650) $ (817,750) PAVIN AND STABLER Consolidation Worksheet For Year Ending December 31, 2021 Consolidation Entries Consolidated Accounts Pavin Stabler Debit Credit Totals Revenues $ 743,000 $ 507,000 106,000 Cost of goods sold 456,000 241,000 Expenses 126,000 159,500 Interest expense-bonds 37,000 0 Interest income-bond investment 0 17,150 Loss on extinguishment of bonds 0 0 Equity in Stabler's income 123,650 0 Net income $ 247,650 $ 123,650 $ 0 Retained earnings, 1/1/21 (Pavin) 346,000 Retained earnings, 1/1/21 (Stabler) 363,000 Net income 247,650 123,650 Dividends declared 156,000 66,000 Retained earnings, 12/31/21 $ 437,650 $ 420,650 $ 0 Cash and receivables $ 218,000 $ 36,000 Inventory 176,000 88,000 Investment in Stabler 613,650 0 Investment in Pavin bonds 0 151,750 Land, buildings, and equipment (net) 246,000 542,000 Trademarks Total assets 0 0 $ 1,253,650 $ 817,750 $ 0 Accounts payable Bonds payable Discount on bonds Common stock 209,000 175,100 310,000 101,000 13,000 0 310,000 121,000 Retained earnings 437,650 420,650 0 Total liabilities and stockholders' equity $ 1,253,650 $ 817,750 $ 0 $ 106,000 $ 0