On January 1, 20X1, Fern Corporation paid Morton Advertising $120,400 to acquire 70 percent of Vincent Company's stock. Fem also paid S45,000 to acquire $50,000 par value 8 percent, 10-year bonds directly from Vincent on that date. Interest payments are made on January 1 and July 1. The fair value of the noncontrolling interest at January 1, 20X1, was $51,600, and book value of Vincent's net assets was $116,000. The book values and fair values of Vincent's assets and liabilities were equal except for buildings and equipment, which had a fair value $56,000 greater than book value and a remaining economic life of 14 years at January 1, 20X1 The trial balances for the two companies as of December 31, 20X3, are as follows: Vincent Company Credit Item Cash & Current Receivables Inventory Land, Buildings, & Equipment (net) Investment in Vincent Bonds Investment in Vincent Stock Discount on Bonds Payable Operating Expenses Interest Expense Dividends Declared Current Liabilities Bonds Payable Common Stock Retained Earnings Sales Interest Income Income from Vincent Co Credit 32,300 173,000 335,000 46,500 127,400 $ 48,000 79,000 193,000 7,000 160,000 192,500 20,000 45,000 $40,300 282,000 84,000 231,800 306,000 4,500 23,100 S 81,000 100,000 34,000 84,000 206,000 Total $971,700 $971,700 $505,000 $505,000 On July 1, 20X2, Vincent sold land that it had purchased for $18,000 to Fern for $26,000. Fern continues to hold the land at December 31, 20X3. Assume Fern Corporation uses the fully adjusted equity method. On January 1, 20X1, Fern Corporation paid Morton Advertising $120,400 to acquire 70 percent of Vincent Company's stock. Fem also paid S45,000 to acquire $50,000 par value 8 percent, 10-year bonds directly from Vincent on that date. Interest payments are made on January 1 and July 1. The fair value of the noncontrolling interest at January 1, 20X1, was $51,600, and book value of Vincent's net assets was $116,000. The book values and fair values of Vincent's assets and liabilities were equal except for buildings and equipment, which had a fair value $56,000 greater than book value and a remaining economic life of 14 years at January 1, 20X1 The trial balances for the two companies as of December 31, 20X3, are as follows: Vincent Company Credit Item Cash & Current Receivables Inventory Land, Buildings, & Equipment (net) Investment in Vincent Bonds Investment in Vincent Stock Discount on Bonds Payable Operating Expenses Interest Expense Dividends Declared Current Liabilities Bonds Payable Common Stock Retained Earnings Sales Interest Income Income from Vincent Co Credit 32,300 173,000 335,000 46,500 127,400 $ 48,000 79,000 193,000 7,000 160,000 192,500 20,000 45,000 $40,300 282,000 84,000 231,800 306,000 4,500 23,100 S 81,000 100,000 34,000 84,000 206,000 Total $971,700 $971,700 $505,000 $505,000 On July 1, 20X2, Vincent sold land that it had purchased for $18,000 to Fern for $26,000. Fern continues to hold the land at December 31, 20X3. Assume Fern Corporation uses the fully adjusted equity method