King Corp. owns $80\%$ of Kong Corp. and uses the cost method to account for its investment, which it acquired on January $1,2018.$ The Financial Statements of King Corp. and Kong Corp. for the Year ended December $31,2018$ are shown below:

Income Statements

King Corp. Kong Corp.

Sales $$500,000$ $$300,000$

Other Revenues $$300,000$ $$120,000$

Less: Expenses

Cost of Goods Sold $$400,000$ $$240,000$

Depreciation Expense $ $20,000$ $$10,000$

Other Expenses $$80,000$ $$40,000$

Income Tax Expense $$120,000$ $$52,000$

Net Income $$180,000$ $$78,000$

Retained Earnings Statements

King Corp. Kong Corp.

Balance, January $1,2018$ $$250,000$ $$350,000$

Net Income $$180,000$ $$78,000$

Less: Dividends $($$$30,000)($$$38,000)$

Retained Earnings $$400,000$ $$390,000$

Balance Sheets

King Corp. Kong Corp.

Cash $$50,000$ $$25,000$

Accounts Receivable $$100,000$ $$250,000$

Inventory $$50,000$ $$250,000$

Investment in Kong Corp. $$500,000-$

Land $-$ $$25,000$

Equipment $$400,000$ $$200,000$

Accumulated Depreciation $($$$250,000)($$$150,000)$

Total Assets $$850,000$ $$600,000$

Current Liabilities $$320,000$ $$62,000$

Dividends Payable $$30,000$ $$38,000$

Common Shares $$100,000$ $$110,000$

Retained Earnings $$400,000$ $$390,000$

Total Liabilities and Equity $$850,000$ $$600,000$