Problem 4-10 (LO 2, 5) 90%, cost, merchandise, note payable. The December 31, 20X2 trial balances of the Pettie Corporation and its 90%-owned subsidiary Sunny Corporation are as follows:

Pettie Sunny Corporation Corporation Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,000 45,500 Accounts and Other Current Receivables . . . . . . . . . . . . . . . . . . . 410,900 170,000 Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 920,000 739,400 Property, Plant, and Equipment (net) . . . . . . . . . . . . . . . . . . . . . . 1,000,000 400,000 Investment in Sunny Corporation . . . . . . . . . . . . . . . . . . . . . . . . . 1,200,000 Accounts Payable and Other Current Liabilities . . . . . . . . . . . . . . . (140,000) (305,900)