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Plaza, Inc., acquires 80 percent of the outstanding common stock of Stanford Corporation on January 1, 2018, in exchange for $960,400 cash. At the acquisition date, Stanfords total fair value, including the noncontrolling interest, was assessed at $1,200,500. Also at the acquisition date, Stanford's book value was $511,000.

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

	Book Value				Fair Value
Tradenames (indefinite life)	$	267,600			$	391,500
Property and equipment (net, 8-year remaining life)		212,000				233,600
Patent (14-year remaining life)		127,200				169,200

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, 2018, for both companies.

	Plaza				Stanford
Revenues	$	(870,800	)		$	(653,600	)
Cost of goods sold		481,400				294,500
Depreciation expense		204,100				26,500
Amortization expense						20,900
Equity in income of Stanford		(244,800	)			0
Net income	$	(430,100	)		$	(311,700	)
Retained earnings, 1/1/18	$	(948,700	)		$	(393,900	)
Net income		(430,100	)			(311,700	)
Dividends declared		223,300				27,000
Retained earnings, 12/31/18	$	(1,155,500	)		$	(678,600	)
Current assets	$	639,900			$	321,300
Investment in Stanford		1,183,600				0
Tradenames		178,600				267,600
Property and equipment (net)		766,500				185,500
Patents		0				106,300
Total assets	$	2,768,600			$	880,700
Accounts payable	$	(105,700	)		$	(85,000	)
Common stock		(223,300	)			(82,000	)
Additional paid-in capital		(1,284,100	)			(35,100	)
Retained earnings (above)		(1,155,500	)			(678,600	)
Total liabilities and equities	$	(2,768,600	)		$	(880,700	)

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. Amounts in the Debit and Credit columns should be entered as positive. Negative amounts for the Noncontrolling Interest and Consolidated Totals columns should be entered with a minus sign.)

PLAZA CORPORATION AND STANFORD CORPORATION Consolidation Worksheet For Year Ending December 31, 2018 Consolidation Entries Noncontrolling Consolidated Accounts Plaza Stanford Debit Credit Interest Totals Revenues $(870,800) $(653,600) Cost of goods sold 481,400 294,500 Depreciation expense 204,100 26,500 Amortization expense 0 20,900 Equity in income of Stanford (244,800) 0 Net income $(430,100) $(311,700) Consolidated net income $0 NCI share of CNI Plaza share of CNI $0 Retained earnings, 1/1 $(948,700) $(393,900) Net income (430,100) (311,700) Dividends declared 223,300 27,000 Retained earnings, 12/31 $(1,155,500) $(678,600) $0 Current assets $639,900 $321,300 Investment in Stanford 1,183,600 0 Tradenames 178,600 267,600 Property and equipment (net) 766,500 185,500 Patents 0 106,300 Goodwill Total assets $2,768,600 $880,700 $0 Accounts payable (105,700) (85,000) Common stock (223,300) (82,000) Additional paid-in capital (1,284,100) (35,100) Noncontrolling interest Retained earnings, 12/31 (1,155,500) (678,600) Total liabilities and equities $(2,768,600) $(880,700) $0 $0 $0

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