Plaza, Inc., acquires 80 percent of the outstanding common stock of Stanford Corporation on January 1, 2021, in exchange for $1,052,900 cash. At the acquisition date, Stanford's total fair value, including the noncontrolling interest, was assessed at $1,316,25 Also at the acquisition date, Stanford's book value was $543,900. Several individual items on Stanford's financial records had fair values that differed from their book values as follows Book Value Pair Valce Trade names (indefinite life) $284,600 $422,200 Property and equipment (net, 8-year remaining life) 233,600 251,200 Patent (14-year remaining life) 134,900 165,700 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 Plaza Stanford $ (852,700) $(714,100) 471,400 313,200 199,800 29,200 22,300 (276,000) $ (457,500) $(349,400) $(1,009,200) $(418,900) (457,500) (349,400) 237,400 22,000 $(1,229,200) $(746,300) $ 680,500 $341,700 1,311,300 190,000 284,600 815,500 204,400 112,600 $2,997,300 $ 943,300 $ (112,500) (72,400) 1939 CARE Accounts Revenues Cost of goods sold Plaza Consolidation Worksheet For Year Ending December 31, 2021 Consolidation Entries Nort Cornold Stanford Debit Credit $ (852,700) $ (714,100) Depreciation expense Amortization expense 471,400 313,200 199,800 29,200 Equity in income of Stanford 22.300 Net income (278,000) 0 Consolidated net income $ (457,500) $ (349,400) NCI share of CNI Plaza share of CNI Retained earnings, 1/1/21 $ (1,009,100) $ (418.900) Net income (457,500) (349,400) Dividends declared 237,400 22,000 Retained earnings, 12/31/21 $ (1,229,200) $ (746,300) Current assets 680,500 $ 341,700 Investment in Stanford 1,311,300 190,000 284,600 Tradenames Property and equipment (net) 815.500 204,400 0 112.600 Patents Goodwill $ 2.997.300 $ 943.300 Total assets (112,500) (72.000) Accounts payable (237,500) (80,000) Common stock (1,418,100) (45.000) Additional paid-in capital Noncontrolling interest