On January 1, 2014, Doone Corporation acquired 60 percent of the outstanding voting stock of Rockne Company for $384,000 consideration. At the acquisition date, the fair value of the 40 percent noncontrolling interest was $256,000 and Rocknes assets and liabilities had a collective net fair value of $640,000. Doone uses the equity method in its internal records to account for its investment in Rockne. Rockne reports net income of $210,000 in 2015. Since being acquired, Rockne has regularly supplied inventory to Doone at 25 percent more than cost. Sales to Doone amounted to $270,000 in 2014 and $370,000 in 2015. Approximately 35 percent of the inventory purchased during any one year is not used until the following year.