Plaza, Inc., acquires 80 percent of the outstanding common stock of Stanford Corporation on January 1, 2021, in exchange for $900,000 cash. At the acquisition date, Stanford's total fair value, including the noncontrolling interest, was assessed at $1,125,000. Also at the acquisition date, Stanford's book value was $690,000. Several individual items on Stanford's financial records had fair values that differed from their book values as follows: Trade names (indefinite life) Property and equipment (net, 8-year remaining life) Patent (14-year remaining life) Book Value Fair Value $ 360,000 $ 383,000 290,000 132,000 330,000 272,000 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 Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 Current assets Investment in Stanford Trade names Property and equipment (net) Patents Total assets Accounts payable Common stock Additional paid-in capital Retained earnings (above) Total liabilities and equities Plaza $ (1,400,000) 774,000 328,000 0 (280,000) Stanford $ (825,000) 395,750 36,250 28,000 $ (578,000) $ (365,000) $(1,275,000) (578,000) 300,000 (530,000) (365,000) 50,000 $ (1,553,000) $ (845,000) $ 860,000 $ 432,250 0 360,000 253,750 104,000 1,140,000 240,000 1,030,000 $ 1,150,000 0 $ 3,270,000 $ (142,000) $ (145,000) (120,000) (40,000) (300,000) (1,275,000) (1,553,000) $(3,270,000) $ (1,150,000) (845,000) 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 Accounts Plaza Stanford Debit Consolidation Entries Credit Noncontrolling Consolidated Interest Totals Revenues $ (1,400,000) $ (825,000) Cost of goods sold 774,000 395,750 Depreciation expense 328,000 36,250 Amortization expense 0 28,000 Equity in income of Stanford (280,000) Net income $ (578,000) $ (365,000) Consolidated net income NCI share of CNI Plaza share of CNI Retained earnings, 1/1/21 $ (1,275,000) $ (530,000) Net income (578,000) (365,000) Dividends declared 300,000 50,000 Retained earnings, 12/31/21 $ (1,553,000) $ (845,000) Current assets $ 860,000 $ 432,250 Investment in Stanford 1,140,000 0 Tradenames 240,000 360,000 Property and equipment (net) 1,030,000 253,750 Patents 0 104,000 Goodwill Total assets Accounts payable $ 3,270,000 $1,150,000 (142,000) (145,000)