Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for $119,000. At that date, the noncontrolling interest had a fair value of $51 ,000 and Soda reported $70,000 of common stock outstanding and retained earnings of $33,000. The differential is assigned to buildings and equipment, which had a fair value $29,000 higher than book value and a remaining 10-year life, and to patents, which had a fair value $38,000 higher than book value and a remaining life of five years at the date of the business combination. Trial balances for the companies as of December 31, are as follows: Pop Corporation Soda Company Item Cash & Accounts Receivable Inventory Land Buildings & Equipment Investment in Soda Company Cost of Goods Sold Depreciation Expense Interest Expense Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Bond Premium Common Stock Retained Eamings Sales Other Income Income from Soda Company Debit 18,400 168,000 83,000 370,000 117,235 189,000 20,000 19,000 33,000 Credit 143,000 95,400 240,790 123,000 130,900 263,000 12,600 8 945 Debit $ 24,600 38,000 43,000 263,000 82,800 15,000 8,200 18,000 Credit $ 75,000 38,000 110,000 1 ,600 70,000 63,000 135,000 S492,600 $492,600 On December 31, Soda purchased inventory for $31 ,200 and sold it to Pop for $48,000. Pop resold $30,000 of the inventory (i.e., $30,000 of the $48,000 acquired from Soda) during and had the remaining balance in inventory at December 31, During 20X3, Soda sold inventory purchased for $65,000 to Pop for $100,000, and Pop resold all but $29,000 of its purchase. On March 10, Pop sold inventory purchased for $17 ,000 to Soda for $34,000. Soda sold all but $8,500 of the inventory prior to December 31, Assume Pop uses the fully adjusted equity method, that both companies use straight-line depreciation, and that no property, plant, and equipment has been purchased since the acquisition.