On January $1,2022,$ Monica Company acquired $70$ percent of Young Company's outstanding common stock for $$658,000.$ The fair value of the noncontrolling interest at the acquisition date was $$282,000.$

Young reported stockholders' equity accounts on that date as follows:

Common stock $$10$ par value

Additional paid$-$in capital

Retained earnings

$$300,000$

$40,000$

$460,000$

In establishing the acquisition value, Monica appraised Young's assets and ascertained that the accounting records undervalued a building $($with a five$-$year remaining life$)$ by $$40,000.$ Any remaining excess acquisition$-$date fair value was allocated to a franchise agreement to be amortized over $10$ years.

During the subsequent years, Young sold Monica inventory at a $30$ percent gross profit rate. Monica consistently resold this merchandise in the year of acquisition or in the period immediately following. Transfers for the three years after this business combination was created amounted to the following.

$\backslash$table$[[$Year$,\backslash$table$[[$Transfer$],[$Price$]],\backslash$table$[[$Inventory$],[$Remaining at Year$-],[$End $($at transfer$],[$price$)]]],[2022,$$$70,000,$$$15,000$