Problem 4-29 (Algo) (LO 4-1, 4-5, 4-6) Plaza, Inc., acquires 80 percent of the outstanding common stock of Stanford Corporation on January 1, 2021, in exchange for $1,007,100 cash. At the acquisition date, Stanford's total fair value, including the noncontrolling interest, was assessed at $1,258,875. Also at the acquisition date, Stanford's book value was $533,800. Several individual items on Stanford's financial records had fair values that differed from their book values as follows: Book Value Fair Value $272,600 $405,100 Trade names (indefinite life) Property and equipment (net, 8-year remaining life) Patent (14-year remaining life) 225,600 130,400 244,800 161,200 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 Plaza $ (829,600) 458,600 194,400 Stanford $ (681,100) 300,000 28,200 21,300 (261,600) 0 Equity in income of Stanford Net income (261,600) $ (438,200) $ (331,600) Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 $ (966,500) (438,200) 227,400 $(1,177,300) $ (401,300) (331,600) 24,000 (708,900) Current assets Investment in Stanford Trade names Property and equipment (net) Patents $ 652,000 1,249,500 182,000 781,100 0 $ 2,864,600 327,300 0 272,600 197,400 109, 100 $ 906,400 Total assets Accounts payable Common stock Additional paid-in capital Retained earnings (above) Total liabilities and equities $ (107,700) (227,500) (1,352, 100) (1,177,300) $(2,864,600) $ (65,000) (118,000) (14,500) (708,900) $ (906,400) 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 For Year Ending December 31, 2021 Consolidation Entries Consolidated Noncontrolling Interest Debit Credit Plaza S (829,600) 458,600 194.400 0 Stanford $ (681,100) 300,000 28,200 21,300 Totals $ (1,510,700) 758,600 225,000 23,500 2,400 2,200 >>> 0 261,600 (261,600) (438,200) $ (331,600) 65,400 Accounts 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, 1/1/21 Net income Dividends declared Retained earnings 12/31/21 Current assets Investment in Stanford Tradenames Property and equipment (net) Patents $ 401,300 $ (401,300) (331.600) 24,000 S (708,900) $ (503,600) 65,400 $ (438,200) $ (966,500) (438,200) 227,400 $ (1,177,300) $ 979,300 000 (966,500) (438,200) 227,400 (1.177,300) 652.000 1.249.500 182,000 19,200 4,800 S $ 327,300 0 272,600 19,200 132,500 781,100 197.400 2,400 19,200 30,800 587,100 995,300 137,700 0 109,100 2.200 x Goodwill Total assets S 2,864,600 Accounts payable (107,700) Common stock (227,500) Additional paid-in capital (1,352,100) Noncontrolling interest Retained earnings, 12/31 (1,177,300) Total liabilities and equities $ 2,864,600) Radtaxt indicate na rawat ararted in a rallara 542,575 $ 906,400 (65,000) (118,000) 118,000 (14,500) 14,500 * (708,900) $ S (906,400) 1,544 275 $ 23,800 hand callstinni innrert: nn neinte dated $ 3,241,975 (172,700) (227,500) (1,352,100) (312,375) (1,177,300) S 3,241,975