Plaza, Inc., acquires 80 percent of the outstanding common stock of Stanford Corporation on January 1, 2018, in exchange for $920,700 cash. At the acquisition date, Stanford's total fair value, including the noncontrolling interest, was assessed at $1,150,875 Also at the acquisition date, Stanford's book value was $492,500. 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) Property and equipment (net, 8-year 253,300371,100 remaining life) Patent (14-year remaining life) 208,800 119,800 227,200 152,000 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 (630,400) 278,800 26,100 19,900 0 Revenues Cost of goods sold Depreciation expense Amortization expensee Equity in income of Stanford $ (782,200) 432,400 183,300 (240,800 $ (407,300) (305,600) $ (898,300) (372,900) 23,000 (1,094,200) (655,500) Net income Retained earnings, 1/1/18 Net income Dividends declared (407,300) 211,400 (305, 600) Retained earnings, 12/31/18 $ 605,900 1,143,100 169,200 726,200 0 304,200 Current assets Investment in Stanford Tradenames Property and equipment (net) Patents 253,300 182,700 99,900 $ 840,100 Total assets $ 2,644,400 Accounts payable Common stock Additional paid-in capital Retained earnings (above) $ (100,100) (65, 000) (211,400) (1,238,700) (114,000) (5,600) (1,094,200)(655,500 $ (2,644,400) (840,100) Total liabilities and equities PLAZA CORPORATION AND STANFORD CORPORATION Consolidation Worksheet For Year Ending December 31, 2018 Consolidation Entries Noncontrolling Consolidated Accounts Plaza Stanford Debit Credit Interest Totals $ (782,200)$ (630,400) 278,800 26,100 19,900 $ (1,412,000) Revenues Cost of goods sold Depreciation expense Amortization expense Equity in income of Stanford Net income Consolidated net income NCI share of CNI Plaza share of CNI Retained earnings, 1/1 Net income Dividends declared Retained earnings, 12/31 Current assets Investment in Stanford 432,400 183,300 (240,800) $ (407,300)$ (305,600) $ (1,412,000) $ (1,412,000) $ (898,300)$ (372,900) (305,600) 23,000 $ (655,500) $ 605,900 $304,200 (407,300) 211,400 1,094,200 1,143,100 Tradenames Property and equipment (net) Patents Goodwill Total assets Accounts payable Common stock Additional paid-in capital Noncontrolling interest Retained earnings, 12/31 Total liabilities and equities 169,200 253,300 182,700 99,900 726,200 489,975 478,975 $ 2,644,400$840,100 (65,000) (114,000) (5,600) 478,975 (100,100) (211,400) (1,238,700) (1,094,200)(655,500) $ (840,100)$ 489,975$ 0 2,644,400