On January $1,2022,$ Plymouth Corporation acquired $80$ percent of the outstanding voting stock of Sander Company in exchange for $$1,200,000$ cash. At that time, although Sander$$s book value was $$925,000,$ Plymouth assessed Sander$$s total business fair value at $$1,500,000.$ Since that time, Sander has neither issued nor reacquired any shares of its own stock.

The book values of Sander's individual assets and liabilities approximated their acquisition$-$date fair values except for the patent account, which was undervalued by $$350,000.$ The undervalued patents had a five$-$year remaining life at the acquisition date. Any remaining excess fair value was attributed to goodwill. No goodwill impairments have occurred.

Sander regularly sells inventory to Plymouth. The following are details of the intra$-$entity inventory sales for the past three years: