On January $1,2023,$ Corgan Company acquired $70$ percent of the outstanding voting stock of Sma$$hing$,$ Incorporated, for a total of $$910,000$ in cash and other consideration. At the acquisition date, Smashing had common stock of $$770,000,$ retained earnings of $$320,000,$ and a noncontrolling interest fair value of $$390,000.$ Corgan attributed the excess of fair value over Smashing's book value to various covenants with a $20-$year remaining life. Corgan uses the equity method to account for its investment in Smashing.

During the next two years, Smashing reported the following:

$\backslash$table$[[,,$Dividends,Inventory Purchases$],[$Items$,$Net Income,Declared,from Corgan$],[2023,$$$220,000,$$$42,000,$$$170,000$