Required:

$*******$Prepare a worksheet to consolidate the financial statements of Plaza, Incorporated, and its subsidiary Stanford.$********$

Plaza, Incorporated, acquires $80$ percent of the outstanding common stock of Stanford Corporation on January $1,2024,$ in exchange for $$941,800$ cash. At the acquisition date, Stanford$$s total fair value, including the noncontrolling interest, was assessed at $$1,177,250.$ Also at the acquisition date, Stanford's book value was $$546,100.$

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

Items Book Value Fair Value

Trade names $($indefinite life$)$ $ $300,900$ $ $360,900$

Property and equipment $($net$,8-$year remaining life$)233,600262,400$

Patent $(14-$year remaining life$)120,900154,500$

For internal reporting purposes, Plaza, Incorporated, employs the equity method to account for this investment. The following account balances are for the year ending December $31,2024,$ for both companies.

Accounts Plaza Stanford

Revenues $ $(795,100)$ $ $(782,600)$

Cost of goods sold $439,600331,000$

Depreciation expense $186,40029,200$

Amortization expense $023,400$

Equity in income of Stanford $(314,400)0$

Net income $ $(483,500)$ $ $(399,000)$

Retained earnings, $1/1/24$ $ $(1,066,500)$ $ $(443,000)$

Net income $(483,500)(399,000)$

Dividends declared $250,90036,000$

Retained earnings, $12/31/24$ $ $(1,299,100)$ $ $(806,000)$

Current assets $ $719,400$ $ $361,300$

Investment in Stanford $1,227,4000$

Trade names $200,800300,900$

Property and equipment $($net$)861,800204,400$

Patents $097,500$

Total assets $ $3,009,400$ $ $964,100$

Accounts payable $ $(118,800)$ $ $(55,000)$

Common stock $(250,900)(90,000)$

Additional paid$-$in capital $(1,340,600)(13,100)$

Retained earnings $($above$)(1,299,100)(806,000)$

Total liabilities and equities $ $(3,009,400)$ $ $(964,100)$

At year$-$end, there were no intra$-$entity receivables or payables.

Required:

Prepare a worksheet to consolidate the financial statements of Plaza, Incorporated, and its subsidiary Stanford.

Note: 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.