$On$ January $1,2024,$ Pine Company owns $40$ percent $(124,000$ shares$)of$ Seacrest, Incorporated, which $it$ purchased several years ago for $$700,600.$ Since the date $of$ acquisition, the equity method has been properly applied, and the carrying amount $of$ the investment account $asof$ January $1,2024,is$ $$905,200.$ Excess patent cost amortization $of$ $$37,200is$ still being recognized each year. During $2024,$ Seacrest reports net income $of$ $$846,000$ and $a$ $$372,000$ other comprehensive loss, both incurred uniformly throughout the year. $No$ dividends were declared during the year. Pine sold $24,800$ shares $of$ Seacrest $on$ August $1,2024,$ for $$236,528in$ cash. However, Pine retains the ability $to$ significantly influence the investee.

During the last quarter $of2023,$ Pine sold $$71,000in$ inventory $(whichit$ had originally purchased for only $$42,600)to$ Seacrest. $At$ the end $of$ that fiscal year, Seacrest's inventory retained $$12,800(at$ sales price$)of$ this merchandise, which was subsequently sold $in$ the first quarter $of2024.$