Holiday Bakery owns 60 percent of Farmco Products Companys stock. On January 1, 20X9, inventory reported by Holiday included 24,000 bags of flour purchased from Farmco at $12 per bag. By December 31, 20X9, all the beginning inventory purchased from Farmco Products had been baked into products and sold to customers by Holiday. There were no transactions between Holiday and Farmco during 20X9. Both Holiday Bakery and Farmco Products price their sales at cost plus 50 percent markup for profit. Holiday reported income from its baking operations of $313,000, and Farmco reported net income of $263,000 for 20X9.