Plaza, Inc., acquires 80 percent of the outstanding common stock of Stanford Corporation on January 1, 2021, in exchange for $862,000 cash. At the acquisition date, Stanford's total fair value, including the noncontrolling interest, was assessed at $1,077,500. Also at the acquisition date, Stanford's book value was $533,900. Several individual items on Stanford's financial records had fair values that differed from their book values as follows: Book Value Fair Value $273,900 $412,700 Trade names (indefinite life) Property and equipment (net, 8-year remaining life) Patent (14-year remaining life) 208,800 109,200 228,800 142,800 For internal reporting purposes, Plaza, Inc., employs the equity method to account for this investment. The following account balances are for the year ending December 31, 2021, for both companies. Revenues Cost of goods sold Depreciation expense Amortization expense Equity in income of Stanford Net income Plaza $ (714,600) 406,900 182,400 0 (266,400) $ (391,700) Stanford $ (669,900) 285,500 26,100 20,400 0 $ (337,900) Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 $(1,032,300) (391,700) 229,400 $(1,194,600) $ (482,600) (337,900) 25,000 $ (795,500) Current assets Investment in Stanford Trade names Property and equipment (net) Patents Total assets $ 627, 700 1,108,400 175,600 740,500 0 $ 2,652,200 $ 333,400 0 273,900 182,700 88,800 $ 878,800 Accounts payable Common stock Additional paid-in capital Retained earnings (above) Total liabilities and equities $ (104,200) (217,200) (1, 136,200) (1,194,600) $(2,652,200) $ (32,000) (50,000) (1,300) (795,500) $(878, 800) At year-end, there were no intra-entity receivables or payables. Prepare a worksheet to consolidate the financial statements of Plaza, Inc., and its subsidiary Stanford. (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.) PLAZA CORPORATION AND STANFORD CORPORATION Consolidation Worksheet For Year Ending December 31, 2021 Consolidation Entries Consolidated Noncontrolling Interest Accounts Plaza Stanford Debit Credit Totals Revenues $ $ (714,600) 406,900 (669,900) 285,500 26,100 20,400 182,400 0 Cost of goods sold Depreciation expense Amortization expense Equity in income of Stanford Net income Consolidated net income 2,500 2,400 266,400 0 (266,400) (391,700) $ $ (337,900) NCI share of CNI (66,600) $ 482,600 Plaza share of CNI Retained earnings, 1/1/21 Net income Dividends declared 20,000 5,000 $ $ 1,113,400 (1,032,300) $ (482,600) (391,700) (337,900) 229,400 25,000 (1,194,600) $ (795,500) 627,700 $ 333,400 1,108,400 0 175,600 273,900 740,500 182,700 0 88,800 Retained earnings, 12/31/21 Current assets Investment in Stanford Tradenames Property and equipment (net) Patents 5,000 2,500 2,400 20,000 33,600 Goodwill 3,512,000 Total assets $ 2,652,200 $ (104,200) (217,200) (1,136,200) 878,800 (32,000) (50,000) (1,300) 50,000 1,300 Accounts payable Common stock Additional paid-in capital Noncontrolling interest Retained earnings, 12/31 Total liabilities and equities 215,500 (215,500) (1,194,600) (795,500) (2,652,200) $ (878,800) 1,353,800 $ 5,729,600 $ $ 1,353,800