Intercompany shareholdings of an affiliated group during the year ended December $31,$ Year $2,$ were as follows:

The equity method is being used for intercompany investments, but no entries have been made in Year $2.$ The profits before equity

method earnings for Year $2$ were as follows:

Intercompany profits before taxes in the December $31,$ Year $2,$ inventories and the selling companies were as follows:

Use income tax allocation at a $40\%$ rate. Assume that there is no acquisition differential for any of the intercompany shareholdings.