In January 1, 2011, Cullmon Company acquired an 80% interest in Toner Company for a purchase price that was $550,000 over the book value of Toner's Stockholders' Equity on the acquisition date. The Cullmon allocated the excess to the following [A] assets: [A] Asset Patent Goodwill Initial Fair Value 300,000 250,000 $550,000 Useful Life (years) 10 Indefinite Toner sells inventory to the Cullmon (upstream) which includes that inventory in products that it (Cullmon), ultimately, sells to customers outside of the controlled group. You have compiled the following data as of 2016 and 2017: 2016 2017 Transfer price for inventory sale $ 671,000 $ 733,000 Cost of goods sold Gross profit % inventory remaining Gross profit deferred (615,000) $ 56,000 25% $ 14,000 (653,000) $ 80,000 35% $ 28,000 EOY Receivable/Payable $ 90,000 $ 100,000 TH inventory not remaining at end of the year has been sold outside of the controlled group. Cullmon and the Toner report the following financial statements at December 31, 2017: Income Statement Cullmon Toner sales $ 6,770,000 $ 2,518,500 (4.739,000) (1.511.100) Cost of goods sold Gross Profit Equity investment income 1,007,400 2,031,000 246,872 Operating expenses (1.242.600) (654,810) $352,590 Net income $ 1,035,272 Statement of Retained Earnings Cullmon Toner BOY Retained Earnings $3,401,248 $1,301,225 Net income 1,035,272 352,5901 Dividends (199210) (35,259) EOY Retained Earnings $4,237,310 $1,618,556 Balance Sheet Cullmon Toner Assets: Cash $ 795,240 $ 696,785 Accounts receivable 866,560 584,292 Inventory 1,313,380 750,513 1,846,665 Equity Investment PPE, net 6,317.764 1,388,533 $11,139,609 $3,420,123 $ 972,849 $ 584,292 Liabilities and Stockholders' Equity: Current Liabilities Long-term Liabilities Common Stock APIC 4,000,000 839,500 1,106,895 167,900 209,875 Retained Earnings 822,555 4,237,310 $11,139,609 _1.618.556 $3,420 123 Compute the end of year noncontrolling interest equity balance