On January $1,2020,$ Mcllroy, Inc., acquired a $60$ percent interest in the common stock of Stinson, Inc., for $$351,600.$ Stinson's book value on that date consisted of common stock of $$100,000$ and retained earnings of $$207,900.$ Also, the acquisition$-$date fair value of the $40$ percent noncontrolling interest was $$234,400.$ The subsidiary held patents $($with a $10-$year remaining life$)$ that were undervalued within the company's accounting records by $$88,600$ and an unrecorded customer list $(15-$year remaining life$)$ assessed at a $$64,500$ fair value. Any remaining excess acquisition$-$date fair value was assigned to goodwill. Since acquisition, Mcllroy has applied the equity method to its Investment in Stinson account and no goodwill impairment has occurred. At year$-$end, there are no intra$-$entity payables or receivables.

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

$\backslash$table$[[$Year $1,$Cost to Mcllros,$\backslash$table$[[$Transfer Pric$],[$to Stinson$]],\backslash$table$[[$Ending Balance$],[($at transfer price$)]]],[2020,$$$138,900,$$$173,625,$$$57,875],[2021,113,400,151,200,37,800]]$

The individual financial statements for these two companies as of December $31,2021,$ and the year then ended follow:

$\backslash$table$[[,$Mcllroy, Inc,Stinson, Inc$],[$Sales$,$$$(765,000),$$$(406,000)],[$Cost of goods sold,$502,800,247,600],[$Operating expenses,$203,285,84,200],[$Equity in earnings in Stinson,$(38,749),0],[$Net income,$$,(97,664),$$$(74,200)],[$Retained earnings, $1/1/21,$$$(850,200),$$$(286,600)],[$Net income,$(97,664),(74,200)],[$Dividends declared,$52,000,21,500],[$Retained earnings, $12/31/21,$$$(895,864),$$$(339,300)],[$Cash and receivables,$$304,600,$$$154,500],[$Inventory$,286,200,134,500],[$Investment in Stinson,$405,198,0],[$Buildings $($net$),377,000,208,800],[$Equipment $($net$),269,000,92,300],[$Patents $($net$),0,27,300],[$Total assets,$$1,641,998,$$$617,400],[$Liabilities$,$$ $(446,134),$$$(178,100)],[$Common stock,$(300,000),(100,000)],[$Retained earnings, $12/31/21,(895,864),(339,300)]]$