On January $1,2023,$ Corgan Company acquired $80$ percent of the outstanding voting stock of Smashing, Incorporated, for a total of $$1,440,000$ in cash and other consideration. At the acquisition date, Smashing had common stock of $$870,000,$ retained earnings of $$420,000,$ and a noncontrolling interest fair value of $$360,000.$ 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$[[$Items$,$Net Income,$\backslash$table$[[$Dividends$],[$Declared$]],\backslash$table$[[$Inventory Purchases$],[$from Corgan$]]],[2023,$$$320,000,$$$52,000,$$$270,000$