Pavin acquires all of Stabler's outstanding shares on January $1,2018,$ for $$700,000$ in cash. Of this amount, $$54,000$ was attributed to equipment with a $10-$year remaining life and $$64,000$ 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 $1,2021,$ Pavin reports $$540,000$ in bonds outstanding with a carrying amount of $$502,400.$ Stabler purchases half of these bonds on the open market for $$260,600.$

During $2021,$ Pavin begins to sell merchandise to Stabler. During that year, inventory costing $$156,000$ was transferred at a price of $$200,000.$ All but $$34,000($at sales price$)$ of these goods were resold to outside parties by year$-$end. Stabler still owes $$57,000$ for inventory shipped from Pavin during December.

The following financial figures are for the two companies for the year ending December $31,2021.$ Dividends were both declared and paid during the current year.

$\backslash$table$[[,,$Pavin,Stabler$],[$Revenues$,$$$,(812,000),$$$(553,000)$