Park effectively gained control over Tiny by acquiring 55% of Tinys common shares issuing 500,000 shares with market value of $1.25 per share to Tinys shareholders on December 31, 2016. There was an assessment of $475,000 for Tinys non-controlling shares. The balance sheets of Park (including the effect of the acquisition) and Tiny on December 31, 2016 are shown below:

	Post-Acquisition Park		Tiny
Ca s h	300,000		125,000
A/R	170,000		500,000
Inventory	330,000		120,000
Other Current As sets	240,000		50,000
Equipment	620,000		375,000
Accumulated Depreciation Equipment	(120,000)		(75,000)
Land			100,000
Buildings (net)	600,000		0
Goodwill	0		75,000
Investment in Tiny	625,000		0
Total Assets	2,765,000		1,270,000
Account Payable	(750,000)		(650,000)
LT Liabilities	(830,000)		(102,000)
Common Stock and APIC	(625,000)		(400,000)
Retained earnings, 12/31/16	(560,000)		(118,000)
Total Liabilities and SE	(2,765,000)		(1,270,000)

At the date of acquisition, the due diligence team determined the following fair values:

Tiny FMV Dec 31, 2016
459,000	A/R	1-year turnover
150,000	Inventory	1-year turnover
170,000	Unrecorded patent	10 years useful life
150,000	Land	Indefinite useful life
104,000	LT Liability	2 years

Park uses the equity method to account for the Investment in Tiny on its books.

During 2017 the following transactions took place:

• Parks total sales were $600,000. All sales from Park were made to Tiny. Parks sales had a 100% markup on the cost of goods sold. At the end of 2017, Tiny held inventory balance of $300,000 from the items purchased from Park.

• Park sold equipment to Tiny on January 1, 2017 for $100,000 in cash. This equipment had a net book value of $90,000 ($180,000 original costs and $90,000 accumulated depreciation) and a useful life of 10 years at the time of the sale.

• Tiny reported net income of $375,000 and paid dividends of $50,000. Park reported net income of $133,500 (including Equity in Tinys income) and paid dividends of $50,000.

During 2018 the following transactions took place:

• All sales from Park were made to Tiny. Parks sales had a 100% markup on the cost of goods sold. The entire inventory from 2017 was sold during the year. At the end of 2018, Tinys entire ending balance of inventory consisted of items purchased from Park. As a result of these sales, there was a balance of $100,000 in intercompany accounts receivable and payable.

• Tiny sold land to Park for $125,000. This land had a book value of 100,000. The financial statements of Park and Tiny for 2018 were as follows: