Pavin acquires all of Stabler€™s outstanding shares on January 1, 2009, for $460,000 in cash. Of this amount, $30,000 was attributed to equipment with a 10-year remaining life and $40,000 was assigned to trademarks expensed over a 20-year period. Pavin applies the partial equity method so that income is accrued each period based solely on the earnings reported by the subsidiary.
On January 1, 2012, Pavin reports $300,000 in bonds outstanding with a book value of $282,000. Stabler purchases half of these bonds on the open market for $145,500.
During 2012, Pavin begins to sell merchandise to Stabler. During that year, inventory costing $80,000 was transferred at a price of $100,000. All but $10,000 (at sales price) of these goods were resold to outside parties by year-end. Stabler still owes $33,000 for inventory shipped from Pavin during December.
The following financial figures are for the two companies for the year ending December 31, 2012. Prepare a worksheet to produce consolidated balances. (Credits are indicated byparentheses.)

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Revenues Cost of goods sold Expenses Interest expense-bonds Interest income bond investment . .. Loss on extinguishment of bonds Equity in Stabler's income Pavin (740,000) 455,000 125,000 36,000 Stabler $(505,000 240,000 158,500 (16,500) (123,000) S (247,000) Net income (345,000) Retained earnings, 1/1/12 Retained earnings, 1/1/12 Net income (above) Dividends paid $(361,000) (123,000) 61,000 $(423,000) 35,000 87,000 (247,000) 155,000 (437,000) Retained earnings, 12/31/12 Cash and receivables Investment in Stabler Land, buildings, and equipment (net) 217,000 175,000 613,000 147,000 541,000 245,000 Trademarks Total assets . 1,250.000 $810,000 Accounts payable .. Bonds payable Discount on bonds Common stock Retained earnings (above) $ (225,000) (300,000) 12,000 (300,000) (437,000) $(167,000) (100,000) (120,000) (423,000) Total liabilities and stockholders' equity