Manning Corporation holds 90 percent of the common stock of Beckham Distributors Inc., purchased on December 31, 2014, for $3,540,000. At the date of acquisition, Beckham reported common stock with a par value of $1,000,000, additional paid-in capital of $1,350,000, and retained earnings of $620,000. The fair value of the noncontrolling interest at acquisition was $1,080,000. The differential at acquisition was attributable to the following items:
Inventory (sold in 2015)	$50,000
Land	36,000
Goodwill	84,000
Total Differential	$170,000
During 2015, Manning sold a plot of land that it had purchased several years before to Beckham at a gain of $53,000; Beckham continues to hold the land. In 2019, Manning and Beckham entered into a five year contract under which Manning provides management consulting services to Beckham on a continuing basis; Bekcham pays Manning a fixed fee of $100,000 per year for the services. At December 31, 2021, Beckham owed Manning $20,000 as the final 2021 quarterly payment under the contract.
On January 2, 2021, Manning paid $350,000 to Beckham to purchase equipment that Beckham was then carrying at $390,000. Beckham had purchased that equipment on December 27, 2015, for $535,000. The equipment is expected to have a total 15-year life and no salvage value. The amount of the differential assigned to goodwill has not been impaired.
At December 31, 2021, trial balances for Manning and Beckham appeared as follows:
	Manning Corp		Beckham Distributors
Item	Debit	Credit	Debit	Credit
Cash	$50,700		$38,000
Current Receivables	101,800		89,400
Inventory	286,000		218,900
Invest. In Schmid Stock	2,974,000
Land	400,000		1,200,000
Bldg & Equipment	2,400,000		2,990,000
Cost of Goods Sold	2,193,000		525,000
Deprec. &Amortiz.	202,000		88,000
Other Expenses	1,381,000		227,000
Dividends Declared	50,000		20,000
Acc. Depreciation		$1,105,000		$420,000
Current Payables		86,200		76,300
Bonds Payable		1,000,000		200,000
Common Stock		100,000		1,000,000
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