On January $01,2022,$ Pebble Company purchased a controlling interest in Rock Company for $$402,000.$ On this date, Rock had total owners' equity of $$440,000.$ Any excess of cost over book value is due to goodwill.Pebble accounts for its investment in Rock using the simple equity method.On January $1,2024,$ Pebble held merchandise acquired from Rock for $$50,000.$ During $2024,$ Rock sold merchandise to Pebble for $$120,000,$ of which Pebble holds $$30,000$ on December $31,2024.$ Rock's gross profit on sales is $40\%.$ On December $31,2024,$ Pebble still owes Rock $$5,000$ for merchandise.On December $31,2022,$ Pebble sold $$100,000$ par value of $11\%,10-$year bonds which resulted in an effective interest rate of $10\%.$ The bonds pay interest semi$-$annually on June $30$ and December $31.$ Both companies use the Effective Interest method to amortize any premium $/$ discount on the bonds.On December $31,2023,$ Rock purchased $$50,000$ par value of the parent's bonds, paying a price equal to par. The bonds are still held on December $31,2024.$On December $31,2024,$ Pebble sold equipment with a cost of $$50,000$ and accumulated depreciation of $$30,000$ to Rock for $$40,000.$ Rock will use the equipment beginning in $2025.$On July $01,2024,$ the subsidiary signed a mortgage note with its parent for $$125,000.$ Interest, at $11\%$ of the unpaid balance, and principal payments are due annually beginning July $1,2025.($For convenience, the mortgage balances are not divided into current and long$-$term portions.$)$