Question 1 of 9 Question 1 3 points Save Answer On January 1, 2020, Cedar Company acquired 80 percent of the outstanding voting stock of Sunny, Inc., for a total of $1,440,000 in cash and other consideration. At the acquisition date, Sunny had common stock of $870,000, retained earnings of $420,000, and a noncontrolling interest fair value of $360,000. Cedar attributed the excess of fair value over Sunny's book value to various covenants with a 20-year remaining life. Cedar uses the equity method to account for its investment in Sunny. During the next two years, Sunny reported the following Net Income Dividends Declared Inventory Purchases from Cedar 2020 $320.000 $52,000 $270,000 2021 300,000 62,000 290,000 Cedar sells inventory to Sunny using a 60 percent markup on cost. At the end of 2020 and 2021, 40 percent of the current year purchases remain in Sunny's inventory. Applying equity method, the amount Cedar will record as Equity in Sunny Earnings for 2021 would be O $217,200 O $237,000 $216,600 O $222,600 A Moving to another question will save this response. Question 1 of 9 DOLL