Bell Company acquires $70\%$ of Demers Company for $$630,000$ on January $1.$ The price paid is proportionate to the total fair value of Demers. Demers reported common stock of $$300,000$ and retained earnings of $$450,000$ on that date. Demers also had unrecorded patents worth $$100,000(10-$year remaining life$).$ Any excess consideration transferred over fair value was attributed to goodwill with an indefinite life. Based on an annual review, goodwill has not been impaired. During the year Demers reported Net Income of $$70,000$ and paid $$30,000$ of dividends. Assume the equity method is applied. At year end Bell has a Patent with a book value of $$40,000.$ Demers has no recorded patents.