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On January 1 , 2 0 2 2 , Monica Company acquired 7 0 percent of Young Company's outstanding common stock for $ 7 2

On January 1,2022, Monica Company acquired 70 percent of Young Company's outstanding common stock for $728,000. The falr value of the noncontroling interest at the acquisition date was $312,000.
Young reported stockholders' equity accounts on that date as follows:
Common stock-$10 par value
Additional paid-in capital
Retained earnings
$200,000
70,000
560,000
In establishing the acquisition value, Monica appraised Young's assets and ascertained that the accounting records undervalued a bullding (with a five-year remaining life) by $80,000. Any remaining excess acquisition-date falr value was allocated to a franchise agreement to be amortized over 10 years.
During the subsequent years, Young sold Monica inventory at a 40 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:
\table[[Year,\table[[Transfer],[Price]],\table[[Inventory],[Remaining at Year-],[End (at transfer],[price)]]],[2022,$30,000,$25,000
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