How do I find the amount of deferred profit from Nolan's upstream sales if I dont know the gross profit rate? How do i calculate the gross profit rate in this situation? Thank you.

EXCEL CASE CPA skills On January 1, 2017, James Company purchased 100 percent of the outstanding voting stock of Nolan, Inc., for $1,000,000 in cash and other consideration. At the purchase date, Nolan had common stock of $500,000 and retained earnings of $185,000. James attributed the excess of acquisition-date fair value over Nolan's book value to a trade name with an estimated 25-year remaining useful life. James uses the equity method to account for its investment in Nolan. During the next two years, Nolan reported the following Dividends Declared 2017 $78,000 $25,000 2018 85,000 27,000 Inventory Transfers to James at Transfer Price $190,000 210,000 Income Nolan sells inventory to James after a markup based on a gross profit rate. At the end of 2017 and 2018, 30 percent of the current year purchases remain in James's inventory Required Create an Excel spreadsheet that computes the following 1. Equity method balance in James' Investment in Nolan, Inc., account as of December 31, 2018. 2. Worksheet adjustments for the December 31, 2018, consolidation of James and Nolan. Formulate your solution so that Nolan's gross profit rate on sales to James is treated as a variable. Page 259