Plaza, Inc., acquires 80 percent of the outstanding common stock of Stanford Corporation on January 1, 2018, in exchange for $985,400 cash. At the acquisition date, Stanford’s total fair value, including the noncontrolling interest, was assessed at $1,231,750. Also at the acquisition date, Stanford's book value was $532,500.

 

Several individual items on Stanford’s financial records had fair values that differed from their book values as follows:

 

	Book Value				Fair Value
Tradenames (indefinite life)	$	301,200			$	354,900
Property and equipment (net, 8-year remaining life)		232,000				255,200
Patent (14-year remaining life)		120,400				161,000

 

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, 2018, for both companies.

 

	Plaza				Stanford
Revenues	$	(828,200	)		$	(746,500	)
Cost of goods sold		458,700				321,700
Depreciation expense		194,400				29,000
Amortization expense						23,000
Equity in income of Stanford		(293,600	)			0
Net income	$	(468,700	)		$	(372,800	)
Retained earnings, 1/1/18	$	(1,036,200	)		$	(431,000	)
Net income		(468,700	)			(372,800	)
Dividends declared		243,800				29,000
Retained earnings, 12/31/18	$	(1,261,100	)		$	(774,800	)
Current assets	$	698,800			$	370,700
Investment in Stanford		1,255,800				0
Tradenames		195,300				301,200
Property and equipment (net)		837,900				203,000
Patents		0				97,400
Total assets	$	2,987,800			$	972,300
Accounts payable	$	(115,200	)		$	(96,000	)
Common stock		(244,800	)			(70,000	)
Additional paid-in capital		(1,366,700	)			(31,500	)
Retained earnings (above)		(1,261,100	)			(774,800	)
Total liabilities and equities	$	(2,987,800	)		$	(972,300	)

 

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. Amounts in the Debit and Credit columns should be entered as positive. Negative amounts for the Noncontrolling Interest and Consolidated Totals columns should be entered with a minus sign.)