On January 1, 2020, Mcllroy, Inc., acquired a 60 percent interest in the common stock of Stinson, Inc., for $383,400. Stinson's book value on that date consisted of common stock of $100,000 and retained earnings of $226,700. Also, the acquisition-date fair value of the 40 percent noncontrolling interest was $255,600. The subsidiary held patents (with a 10-year remaining life) that were undervalued within the company's accounting records by $88,000 and an unrecorded customer list (15-year remaining life) assessed at a $63,900 fair value. Any remaining excess acquisition-date fair value was assigned to goodwill. Since acquisition, Mcllroy has applied the equity method to its Investment in Stinson account and no goodwill impairment has occurred. At year-end, there are no intra-entity payables or receivables. Intra-entity inventory sales between the two companies have been made as follows: Year Cost to McIlroy 2020 2021 $138,300 112,800 Transfer Price to Stinson $172,875 150,400 Ending Balance (at transfer price) $57,625 37,600