PaVin acquires all of Stabler's outstanding shares on January $1,2018,$ for $$510,000$ in cash. Of this amount, $$35,000$ was attributed to equipment with a $5-$year remaining life and $$45,000$ was assigned to trademarks expensed over a $10-$year perlod. Pavin applies the partial equity method so that Income is accrued each period based solely on the earnings reported by the subsidlary.

On January $1,2021,$ Pavin reports $$350,000$ in bonds outstanding with a carrying amount of $$330,000.$ Stabler purchases half of these bonds on the open market for $$170,000.$

During $2021,$ Pavin begins to sell merchandise to Stabler. During that year, Inventory costing $$100,000$ was transferred at a price of $$125,000.$ All but $$15,000($at sales price$)$ of these goods were resold to outside partles by year$-$end. Stabler still owes $$38,000$ for Inventory shipped from Pavin during December.

The following financlal figures are for the two companles for the year ending December $31,2021.$ Dividends were both declared and pald during the current year.

$\backslash$table$[[$PAVIN AND STABLER$],[$Consolidation Worksheet$],[$For Year Ending December $31,2021],[,$Pavin,Stabler,Consolidation Entries,$\{$

$\backslash$table$[[$Consolidated$],[$Totals$]]\}],[$Accounts$,$Debit,Credit$],[$Revenues$,$$$,755,000,5,515,000,,,,],[$Cost of goods sold,,$460,000,,245,000,,2,,],[$Expenses$,,130,000,,163,500,,,,],[$Interest expense$-$bonds,,$41,000,,0,,,,],[$Interest income$-$bond investment,,$0,,19,750,,,,],[$Loss on extinguishment of bonds,,$0,,0,,,,],[$Equity in Stabler's income,,$126,250,,0,,,,],[$Net income,$3,250,250,5,126,250,,,5,0],[$Retained earnings, $1/1/21($Pavin$),,350,000,,,,,,],[$Retained earnings, $1/1/21($Stabler$),,,,371,000,,,,],[$Net income,,$250\mathrm{.}250,,126,250,,,,],[$Dividends declared,,$160,000,,82,000,,,,],[$Retained earnings, $\frac{12}{31}\frac{?}{21},$$$,440,250,s,415,250,,,5,.],[$Cash and receivables,$$,222,000,$s$,40,000,,,,],[$Inventory$,,180,000,,92,000,,,,],[$Investment in Stabler,,$620\mathrm{.}250,,0,,,,],[$Investment in Pavin bonds,,$0,,170,750,,,,],[$Land$,$ buildings, and equipment $($net$),,250,000,,546,000,,,,],[$Trademarks$,,0,,0),,,,],[$Total assets,$$,1\mathrm{.}272\mathrm{.}250,5,848,750,,,5,0],[$Accounts payable,,$185,000,,203\mathrm{.}500,,,,],[$Eonds payable,,$350,000,,105,000,,,,],[$Discount on bonds,,$17,000,,$of$,,,,],[$Common stock,,$314,000,,125,000,,,,],[$Retained earnings,,$440\mathrm{.}250,,415,250,,,,0],[$Total liabilites and stockholders' equity,$$,1\mathrm{.}272\mathrm{.}250,5,848,750,3,$s$,$S$,0]]$