Pavin acquires all of Stabler's outstanding shares on January $1,2021,$ for $$660,000$ in cash. Of this amount, $$50,000$ was attributed to equipment with a $10-$year remaining life and $$60,000$ 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 $$500,000$ in bonds outstanding with a carrying amount of $$464,000.$ Stabler purchases half of these bonds on the open market for $$241,000.$

During $2024,$ Pavin begins to sell merchandise to Stabler. During that year, inventory costing $$160,000$ was transferred at a price of $$200,000.$ All but $$30,000($at sales price$)$ of these goods were resold to outside parties by year$-$end. Stabler still owes $$53,000$ 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.

$\backslash$table$[[$Accounts$,$Pavin,Stabler$],[$Revenues$,$$$(800,000),$$$(545,000)],[$Cost of goods sold,$475,000,260,000],[$Expenses$,145,000,178,500],[$Interest expense$-$bonds,$56,000,0],[$Interest income$-$bond investment,$0,(24,000)],[$Loss on extinguishment of bonds,$0,0],[$Equity in Stabler's income,$(130,500),0],[$Net income,$$(254,500),$$$(130,500)],[\backslash$table$[[$Retained earnings, $1/1/24],[$Net income $($above$)]],\backslash$table$[[(365,000)],[(254,500)]],],[$Dividends declared,$175,000,97,000],[$Retained earnings, $12/31/24,$$$(444,500),$$$(434,500)],[$Cash and receivables,$$237,000,$$$55,000],[$Inventory$,195,000,107,000],[$Investment in Stabler,$684,500,0],[$Investment in Pavin bonds,$0,245,000],[\backslash$table$[[$Land$,$ buildings, and equipment$],[($net$)]],265,000,561,000],[$Trademarks$,0,0],[$Total assets,$1,381,500^($$$),968,000],[\backslash$table$[[$Accounts payable$],[$Bonds payable$]],),)],[$Discount on bonds,$20,000,0],[$Common stock,$(329,000),(140,000)],[$Retained earnings $($above$),(444,500),(434,500)],[\backslash$table$[[$Total liabilities and$],[$stockholders$\text{'}$ equity$]],(1,381,500)^($$$),$$$(968,000)]]$

Note: Credits are indicated by parentheses.