During 2017 the following transactions took place: . All sales from Georgia were made to Atlanta. Georgia's sales had a 100% markup on the cost of goods sold. The entire inventory from 2016 was sold during the year. At the end of 2017, Atlanta's entire ending balance of inventory consisted of items purchased from Georgia. As a result of these sales, there was a balance of $100,000 in intercompany accounts receivable and payable. Atlanta sold land to Georgia for $125,000. This land had a book value of 100,000. The financial statements of Georgia and Atlanta for 2017 were as follows: Georgia Atlanta Income Statement 2017 2017 Sales 750,000 1,225.000 COGS (375,000) (700,000) Opera ting Expenses (Including Depreciation) (421,000) (160,000) Gain on Sale of Land 25,000 Equity in Atlanta's Income 167.950 0 Net Income 121,950 390.000