Acker Inc. bought 40% of Howell Co., on January 1, 2020 for $576,000. The equity method of accounting was used. The book value and fair value of the net assets of Howell on that date were $1,440,000. Acker began supplying inventory to Howell as follows: Year Acker Cost to Transfer Price Amount Held by Howell at Year- 2020 $55,000 $ 75,000 2021 $70,000 $110,000 End $15,000 $55,000