On January $1,2020,$ Parent, Inc., acquired a $60$ percent interest in the common stock of Subsidiary, Inc., for $$391,800.$ Subsidiary's book value on that date consisted of common stock of $$100,000$ and retained earnings of $$231,600.$ Also, the acquisition$-$date fair value of the $40$ percent noncontrolling interest was $$261,200.$ The subsidiary held patents $($with a $10-$year remaining life$)$ that were undervalued within the company's accounting records by $$85,600$ and an unrecorded customer list $(15-$year remaining life$)$ assessed at a $$61,800$ fair value. Any remaining excess acquisition$-$date fair value was assigned to goodwill. Since acquisition, Parent has applied the equity method to its Investment in Subsidiary 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:

Year

Cost to Parent

Transfer Price

to Subsidiary

Ending Balance

$($at transfer price$)$

$2020$

$$137,100$

$$171,375$

$$57,125$

$2021$

$113,400$

$151,200$

$37,800$

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

Parent, Inc.

Subsidiary, Inc.

Sales

$

$(755,000$

$)$

$

$(395,000$

$)$

Cost of goods sold

$496,200$

$241,000$

Operating expenses

$201,455$

$82,000$

Equity in earnings in Subsidiary

$(37,567$

$)$

$0$

Net income

$

$(94,912$

$)$

$

$(72,000$

$)$

Retained earnings, $1/1/21$

$

$(824,900$

$)$

$

$(285,700$

$)$

Net income

$(94,912$

$)$

$(72,000$

$)$

Dividends declar