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1.On 1/1/2019, Choco Corp. acquired 90% of the voting common stock of Allie Inc. for $180,000 and the fair value of non-controlling interest (NCI) on

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1.On 1/1/2019, Choco Corp. acquired 90% of the voting common stock of Allie Inc. for $180,000 and the fair value of non-controlling interest (NCI) on acquisition date was $20,000. There is no control premium for Choco' acquisition of Allie. Following is intra- entity inventory (downstream) sales between Choco and Allie in 2019 and 2020. 2019 2020 Transfer price $670,000 $500,000 Historical cost $603,000 $425,000 % of intra-entity inventory sales 40% 50% unsold at the end of each year . On 1/1/2019, Choco allocated the entire $70,000 excess fair value over book value of Allie as a "Trademark" (with an estimated remaining life of 7 years). . Choco uses the equity method to account for its investment in Allie. . Following is net income and dividends information for Choco and Allie in 2019 and 2020. 2019 2020 Choco Allie Choco Allie Net income $550,000 $400,000 $650,000 $600,000 Dividends $220,000 $100,000 $320,000 $120,000 . Book value of Allie's net assets on 1/1/2019 is $130,000

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