55. Consolidation subsequent to date of acquisition-Equity method with noncontrolling interest, AAP, and upstream intercompany inventory sale Assume, on January 1, 2016, a parent company acquired an 85% interest in its subsidiary. The total fair value of the controlling and noncontrolling interests was $500,000 over the book value of the subsidiary's Stockholders' Equity on the acquisition date. The parent assigned the excess to the following [A ] assets: [A] Asset Initial Fair Value Useful Life Property, plant and equipment (PPE), net . . .. $240,000 12 years Patent . . . . . . . . . . 260,000 10 years $500,000 This acquisition resulted in no recognized goodwill. Assume the subsidiary sells inventory to the parent (upstream) which includes that inventory in products that it ultimately sells to customers outside of the controlled group. You have compiled the following data for the years ending 2018 and 2019