On January 1, 2012, Perry Company purchased 80% of Selby Company for $999,700. At that time Selby had capital stock outstanding of $347,800 and retained earnings of $377,200. The fair value of Selby Companys assets and liabilities is equal to their book value except for the following: Fair Value Book Value Inventory $210,500 $159,800 Plant and Equipment (10-year life) 785,000 633,200 One-half of the inventory was sold in 2012, the remainder was sold in 2013. At the end of 2012, Perry Company had in its ending inventory $60,400 of merchandise it had purchased from Selby Company during the year. Selby Company sold the merchandise at 25% above cost. During 2013, Perry Company sold merchandise to Selby Company for $311,200 at a markup of 20% of the selling price. At December 31, 2013, Selby still had merchandise that it purchased from Perry Company for $81,900 in its inventory. Financial data for 2013 are presented here: Perry Corporation Selby Company Sales $1,393,300 $807,900 Dividend Income 19,760 Total Revenue 1,413,060 807,900 Cost of Goods Sold: Beginning Inventory 229,000 145,400 Purchases 900,600 379,800 Cost of Goods Available 1,129,600 525,200 Less: Ending Inventory 452,000 198,100 Cost of Goods Sold 677,600 327,100 Other Expenses 251,000 195,700 Total Cost and Expense 928,600 522,800 Net Income $484,460 $285,100 1/1 Retained Earnings $1,506,400 $479,100 Net Income 484,460 285,100 Dividends Declared (50,300 ) (24,700 ) 12/31 Retained Earnings $1,940,560 $739,500 Cash $95,600 $69,400 Accounts Receivable 299,100 89,300 Inventory 452,000 198,100 Investment in Selby Company 999,700 Plant and Equipment (net) 842,300 585,900 Other Assets (net) 386,900 228,300 Total Assets $3,075,600 $1,171,000 Accounts Payable $70,740 $23,600 Other Liabilities 102,400 60,100 Capital Stock 961,900 347,800 Retained Earnings 1,940,560 739,500 Total Liabilities and Equity $3,075,600 $1,171,000