A C D F G 1 Assume, on January 1, 2012, a parent company acquired a 90% interest in its subsidiary. The total fair value 2 of the controlling and noncontrolling interests was $936,000 over the book value of the subsidiary's Stockholders' Equity 3 on the acquisition date. The parent assigned the excess to the following [A] assets: \begin{tabular}{|c|l|r|r|r|} \hline 4 & & & & \\ \hline 5 & {[ A] Asset } & & Initial Fair Value & \\ \hline 6 & Property, plant and equipment & $270,000 & Useless Life \\ \hline 7 & Patent & & 10 years \\ \hline 8 & Goodwill & & 216,000 & 8 vears \\ \hline 9 & & 450,000 & \\ 10 & & $936,000 & \\ \hline 11 & & & \\ \hline \end{tabular} Based on the relative acquisition-date fair values of the controlling and noncontrolling interests, Goodwill 13 was allocated to the parent and subsidiary in a 90:10 split, respectively. Assume the parent sells inventory 14 to the subsidiary (downstream) which includes that inventory in products that it ultimately sells to 15 customers outside of the controlled group. You have compiled the following data as of 2018 and 2019: \begin{tabular}{|l|l|r|r|r|} \hline 16 & & & & \\ \hline 17 & & & & \\ \hline 18 & & & 2018 & 2019 \\ \hline 19 & Transfer price for inventory sale.. & & $540,000 & $405,000 \\ \hline 20 & Cost of goods sold & & 396,000 & 270,000 \\ \hline 21 & Gross profit. & & $144.00 & $135,000 \\ \hline 22 & % Inventory remaining & & 45% & 60% \\ \hline 23 & Gross profit deferred. & & $64,800 & $81,000 \\ \hline 24 & EOY receivable/payable. & & $54,000 & $36,000 \\ \hline 25 & & & & \\ \hline 26 & & & & \\ \hline \end{tabular} 27 The inventory not remaining at the end of the year has been sold outside of the controlled group. The parent 28 uses the equity method of pre-consolidation investment bookkeeping. The parent and the subsidlary 29 report the following pre-consolidation financial statements at December 31,2019