Problem $5-28($Static$)($LO $5-2,5-3,5-4,5-5)$

On January $1,2022,$ Plymouth Corporation acquired $80$ percent of the outstanding voting stock of Sander Company in exchang $\backslash (\backslash$$ $1,200,000\backslash )$ cash. At that time, although Sander's book value was $\backslash (\backslash$$ $925,000\backslash ),$ Plymouth assessed Sander's total business fair val $\backslash (\backslash$$ $1,500,000\backslash ).$ Since that time, Sander has neither issued nor reacquired any shares of its own stock.

The book values of Sander's individual assets and liabilities approximated their acquisition$-$date fair values except for the paten account, which was undervalued by $\backslash (\backslash$$ $350,000\backslash ).$ The undervalued patents had a five$-$year remaining life at the acquisition date. remaining excess fair value was attributed to goodwill. No goodwill impairments have occurred.

Sander regularly sells inventory to Plymouth. The following are details of the intra$-$entity inventory sales for the past three years

Separate financial statements for these two companies as of December $31,2024,$ follow:

Required:

a$.$ Prepare a schedule that calculates the Equity in Earnings of Sander account balance.

b$.$ Prepare a worksheet to arrive at consolidated figures for external reporting purposes. At year$-$end, there are no intra$-$entity payables or receivables.

Complete this question by entering your answers in the tabs below.

Prepare a schedule that calculates the Equity in Earnings of Sander account balance.

Prepare a worksheet to arrive at consolidated figures for external reporting purposes. At year$-$end, there are no intra$-$entity payables or receivables.

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.