Return to question Plaza, Inc., acquires 80 percent of the outstanding common stock of Stanford Corporation on January 1, 2021, in exchange for $920.700 cash. At the acquisition date, Stanford's total fair value, including the noncontrolling interest, was assessed at $1150,875. 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 Trade names (indefinite life) $253,300 $371,100 Property and equipment (net, B-year remaining life) 208.800 227,200 Patent (14-year remaining life) 119,800 152,000 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, 2021, for both companies. Plaza $ (782,200) 432,400 183,300 Revenues Cost of goods sold Depreciation expense Amortization expense Equity in income of Stanford Net Income Stanford $ (630,400) 278,800 26,100 19,900 (240.800) $ (407,300) $ (305,600) Retained earnings, 1/1/21 Net Income $(898,300) (407,300) $ (372,900) (305,600) Depreciation expense Amortization expense Equity in income of Stanford Net income 183,300 9 (240,890) $ (407,300) 26,109 19,900 A $ (305,600) Retained earnings, 1/1/21 Net income Dividends declared Retained earnings, 12/31/21 $ (898,300) (407,300) 211,400 $(1,094,200) $ (372,980) (305,689) 23,000 $ (655,500) $ $ 304,200 Current assets Investment in Stanford Trade names Property and equipment (net) Patents Total assets 605,900 1,143, 100 169,200 726,200 253,300 182,780 99,900 840,100 $ 2,644,400 $ Accounts payable Common stock Additional paid-in capital Retained earnings (above) Total liabilities and equities $ (100,100) (211,400) (1,238,700) (1,094, 200 $(2,644,400) $ (65,000) (114,000) (5,600) (655,500) $ (840,100) 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. Input all amounts as positive values.) Consolidated Accounts Answer is not complete. PLAZA CORPORATION AND STANFORD CORPORATION Consolidation Worksheet For Year Ending December 31, 2021 Consolidation Entries Noncontrolling Plaza Stanford Debit Credit Interest (782 200) S: (630.400) 432,400 278,800 183,300 26.100 0 19,900 (240,800) 0 Totals S Revenues Cost of goods sold Depreciation expense Amortization expense Equity in income of Stanford $ 1,412,600 711,200 209.400 19.9003 240.800 0 (240,800) (407,300) 240,800 s 5 (305,600) 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 Goodwill Total assets Accounts payable Common stock $ (372,900) (305,600) 23,000 $ (655,500) $ (898,300) (407,300) 211,400 S (1.094,200) $ 605,900 1.143,100 169,200 726,200 $ 304,200 0 253,300 182.700 0 99.900 $ 2,644.400 (100.100) (211 400) $ 840.100 (65,000) (114.000) $ (898,300) (407.300) 211,400 $ (1,094,200) $ 605,900 1,143,100 169,200 726,200 S (372,900) (305,600) 23,000 $ (655,500) $ 304,200 0 253,300 182,700 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 Goodwill Total assets Accounts payable Common stock Additional paid-in capital Noncontrolling interest Retained earnings, 12/31 Total liabilities and equities 0 99.900 $ $ 840 100 2.644,400 (100,100) (211.400) (1,238,700) (65,000) (114.000) (5,600) 1.749.700 X (1.094,200) $ (2,644,400) (655,500) $ (840,100) s 0 $ 0