Plaza, Inc., acquires 80 percent of the outstanding common stock of Stanford Corporation on January 1, 2021, in exchange for $1179 200 cash. At the acquisition date. Stanford's total fair value. Including the noncontrolling Interest, was assessed at $1.474.000 Also at the acquisition date, Stanford's book value was $631,300. Several individual items on Stanford's financial records had fair values that differed from their book values as follows: Book Value Fair Value Trade names indefinite lite) $329,900 $473,300 Property and equipment (net, S-year remaining lite) 259,280 288,300 Patent (14-year remaining life) 155,100 195,7ee 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. Pla Stanford Nevers $(1,007,000) $(023,000) Cost of goods sold 556,700 163, 100 Depreciation expense 235,900 32,400 Amortization experise 25.900 Equity in Income of Stanford (316,000 Net Income 5. (534,400) 5 (401,600) Retained earnings, 1/1/21 Income Dividends declared Rintained earnings, 12/31/21 $(1,169,900) (51,400 225200 $(2,425,000 5 (485,500) (401.600) 27.000 $(850, 100) $ Current assets Investment in Stanford 788,900 1,465,600 220,300 945,500 Property and equipment (6) $ 396,000 329,90 226,800 129.200 $ 1,001,900 Patents Total assets $ 1,420,300 Accounts payable Common stock Additional paid-In Capital Retained earnings (above) Total abilities and equities $ 130,500) (275,500) (1,589,300) (8,425,000 $(3,420,300) 5 (86,000) (76.000) (60,000) Case 10e) 5(1,681,900) At year-end, there were no intra-entity receivables or payables Prepare a workshoot 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. 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 Noncontrolling Consolidated Accounts Plaza Stanford Debit Credit Interest Totals Revenues S (1.007.000) $ (823,000) Cost of goods sold 558,700 383.100 Depreciation expense 235.900 32.400 Amortization expense 0 25.000 Equity in income of Stanford (318,000) 0 Net income S (530.400) S (401,600) Consolidated net income NCI share of CNI Plaza share of CNI Retained earnings 1/1/21 $ (1.180.000) $ (485,500) Net income (530.400) (401.600) Dividends declared 275.300 37,000 Retained earnings 12/31/21 S (1.425.000) $ (850.100) Current assets $ 788.900 $ 398.000 Investment in Stanford 1,485,600 0 Tradenames 220,300 329,000 Property and equipment (net 945.500 228.800 Patents 0 129.200 Goodwil Total assets $ 3.420 300 $ 1.081.900 Accounts payable (130.500) (88,000) Common stock (275,500) (76.000) Additional paid in capital (1.589.300) (69.800) Noncontrolling interest Retained earnings 12/31 (1.425,000) (850,100) Total liabilities and equities $(3.420.300) $(1.081.000) 3 0