On January $1,2023,$ Pulaski, Incorporated, acquired a $60$ percent interest in the common stock of Sheridan, Incorporated, for $$372,000.$ Sheridan's book value on that date consisted of common stock of $$100,000$ and retained earnings of $$220,000.$ Also, the acquisition$-$date fair value of the $40$ percent noncontrolling interest was $$248,000.$ The subsidiary held patents $($with a $10-$year remaining life$)$ that were undervalued within the company's accounting records by $$70,000$ and also had unpatented technology $(15-$year estimated remaining life$)$ undervalued by $$45,000.$ Any remaining excess acquisition$-$date fair value was assigned to an 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:Year $20232024$Cost to Pulaski$ $120,000112,000$Transfer Price to Sheridan$ $150,000160,000$Ending Balance $($at transfer price$)$$ $50,00040,000$The individual financial statements for these two companies as of December $31,2024,$ and the year then ended follow:ItemsPulaski,Sheridan,SalesIncorporatedIncorporatedCost of goods sold$ $(700,000)$$ $(335,000)$Operating expenses$460,000205,000$Equity in earnings in Sheridan$188,00070,000$Net income$(28,000)$Retained earnings, $1/1/24$$ $(80,000)$$ $(60,000)$Net income$ $(695,000)$$$(280,000)$Dividends declared$(80,000)(60,000)$Retained earnings, $12/31/2445,00015,000$Cash and receivables$$(730,000)$$$(325,000)$Inventory$ $248,000$Investment in Sheridan$233,000148,000$Buildings $($net$)411,000129,000$Equipment $($net$)308,000$Patents $($net$)220,000202,000$