Pea Corporation acquired 80 percent of Split Brewing Company's stock on January 1, 20X1, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 20 percent of Split's book value. On January 1, 20X1, Split issued $300,000 par value. 8 percent, 10-year bonds to Malt Company for $360,000. Pea subsequently purchased $100,000 of the bonds from Malt for $102,000 on January 1, 20X3: Interest is paid semiannually on January 1 and July 1. Summarized balance sheets for Pea and Split as of December 31, 20X4, follow: Cash & Receivables Inventory PEA CORPORATION Balance Sheet December 11, 20x4 Accounts Payable Bonds Payable Common Stock $ 40,000 400,000 200,000 309,627 $122,500 200,000 Buildings & Equipment (net) 320,000 Investment in Split Company) Retained Earnings Bonds 101,607 Stock 205,520 Total Assets ssd9,027) Total Liabilities & Owners' Equity $940,027 Cash & Receivable Inventory 150,000 SPLIT BREWING COMPANY Balance Sheet December 31, 20x4 $124,000 Accounts Payable Bonds Payable Buildings &auipment (net) H0,000 Bond Premium Common Stock Retained Earnings Tistal Assets $634,000 Total Liabilities & Owners faity $ 20,000 300,000 39.739 100,000 166-261 $634,000 At December 31, 20x4, Split holds $42,000 of inventory purchased from Pea, and Pea holds $26,000 of inventory purchased from Split Split and Pea sell inventory to each other at cost plus markups of 30 percent and 40 percent, respectively. Assume total sales from Pesto Side $100.000 and from Solit to Paw $50.000