I am wondering how to calculate optional accumulated depreciation in the consolidation of a less than wholly owned subsidiary acquired at more than book value with inventory transfers. Nothing I do seems to work, and I am getting really creative and confusing myself with all sorts of calculations. What is the proper formula for calculating optional accumulated depreciation in this situation?

Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for $112,700. At that date, the noncontrolling interest had a fair value of $48,300 and Soda reported $71,000 of common stock outstanding and retained earnings of $31,000. The differential is assigned to buildings and equipment, which had a fair value $28,000higher than book value and a remaining 10-year life, and to patents, which had a fair value $31,000 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, 20X3, are as follows:

Pop CorporationSoda CompanyItemDebitCreditDebitCreditCash & Accounts Receivable$16,400$22,600Inventory166,00036,000Land81,00041,000Buildings & Equipment350,000261,000Investment in Soda Company117,200Cost of Goods Sold187,00080,800Depreciation Expense20,00015,000Interest Expense17,0006,200Dividends Declared31,00016,000Accumulated Depreciation$141,000$85,000Accounts Payable93,40036,000Bonds Payable219,25094,000Bond Premium1,600Common Stock121,00071,000Retained Earnings128,90061,000Sales261,000130,000Other Income10,600Income from Soda Company10,450$985,600$985,600$478,600$478,600

On December 31, 20X2, Soda purchased inventory for $31,500 and sold it to Pop for $45,000. Pop resold $30,000 of the inventory (i.e., $30,000 of the $45,000 acquired from Soda)during 20X3 and had the remaining balance in inventory at December 31, 20X3.

During 20X3, Soda sold inventory purchased for $56,000 to Pop for $80,000, and Pop resold all but $25,000 of its purchase. On March 10, 20X3, Pop sold inventory purchased for $15,000 to Soda for $30,000. Soda sold all but $7,800 of the inventory prior to December 31, 20X3. 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.

I need to be able to calculate the amount of optional accumulated depreciation for consolidated financial adjustment entries. I am aware that the transaction is Debited to Accumulated Depreciation and is Credited to Buildings and Equipmet