$On$ January $1,2023,$ Pulaski, Incorporated, acquired $a60$ percent interest $in$ the common stock $of$ Sheridan, Incorporated, for

$$384,000.$ Sheridan's book value $on$ that date consisted $of$ common stock $of$ $$100,000$ and retained earnings $of$ $$227,100.$ Also, the

acquisition$-$date fair value $of$ the $40$ percent noncontrolling interest was $$256,000.$ The subsidiary held patents $(witha10-$year

remaining life$)$ that were undervalued within the company's accounting records $by$ $$73,300$ and also had unpatented technology $(15-$

year estimated remaining life$)$ undervalued $by$ $$49,500.$ Any remaining excess acquisition$-$date fair value was assigned $toan$ indefinite$-$

lived trade name. Since acquisition, Pulaski has applied the equity method $to$ its Investment $in$ Sheridan account. $At$ year$-$end, there are

$no$ intra$-$entity payables $or$ receivables.

Intra$-$entity inventory sales between the two companies have been made $as$ follows:

The individual financial statements for these two companies $asof$ December $31,2024,$ and the year then ended follow: