Pavin acquires all of Stabler$$s outstanding shares on January $1,2021,$ for $$550,000$ in cash. Of this amount, $$39,000$ was attributed to equipment with a $10-$year remaining life and $$49,000$ was assigned to trademarks expensed over a $20-$year period. Pavin applies the partial equity method so that income is accrued each period based solely on the earnings reported by the subsidiary.

On January $1,2024,$ Pavin reports $$390,000$ in bonds outstanding with a carrying amount of $$366,000.$ Stabler purchases half of these bonds on the open market for $$189,000.$

During $2024,$ Pavin begins to sell merchandise to Stabler. During that year, inventory costing $$116,000$ was transferred at a price of $$145,000.$ All but $$19,000($at sales price$)$ of these goods were resold to outside parties by year$-$end. Stabler still owes $$42,000$ for inventory shipped from Pavin during December.

The following financial figures are for the two companies for the year ending December $31,2024.$ Dividends were both declared and paid during the current year.

Accounts Pavin Stabler

Revenues $ $(767,000)$ $ $(523,000)$

Cost of goods sold $464,000249,000$

Expenses $134,000167,500$

Interest expense$$bonds $45,0000$

Interest income$$bond investment $0(21,750)$

Loss on extinguishment of bonds $00$

Equity in Stabler$$s income $(128,250)0$

Net income $ $(252,250)$ $ $(128,250)$

Retained earnings, $1/1/24$ $ $(354,000)$ $ $(379,000)$

Net income $($above$)(252,250)(128,250)$

Dividends declared $164,00086,000$

Retained earnings, $12/31/24$ $ $(442,250)$ $ $(421,250)$

Cash and receivables $ $226,000$ $ $44,000$

Inventory $184,00096,000$

Investment in Stabler $638,2500$

Investment in Pavin bonds $0189,750$

Land, buildings, and equipment $($net$)254,000550,000$

Trademarks $00$

Total assets $ $1,302,250$ $ $879,750$

Accounts payable $ $(173,000)$ $ $(220,500)$

Bonds payable $(390,000)(109,000)$

Discount on bonds $21,0000$

Common stock $(318,000)(129,000)$

Retained earnings $($above$)(442,250)(421,250)$

Total liabilities and stockholders$$ equity $ $(1,302,250)$ $ $(879,750)$