Pear Corporation acquired 75 percent ownership of Sugar Company on January 1, 20X1, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 25 percent of the book value of Sugar Company. Consolidated balance sheets at January 1, 20X3, and December 31, 20X3, are as follows: Item Assets Cash Accounts Receivable Inventory Land Buildings & Equipment Less: Accumulated Depreciation Patents Total Assets Liabilities and Owners' Equity Accounts Payable Jan. 1, 20X3 Dec. 31, 20x3 $ 69,500 89,000 117,000 49,000 526,000 (172,500) 8,000 $ 686,000 $ 52,000 22,000 249,000 136,000 $ 101,500 104,000 125,000 59,000 561,000 (209,000) 7,000 $ 748,500 $ 57,000 16,000 264,000 136,000 Wages Payable Notes Payable Common Stock ($10 par value) Retained Earnings 205,000 249,500 Noncontrolling Interest 22,000 26,000 Total Liabilities and Owners' Equity $ 686,000 $ 748,500 The consolidated income statement for 20X3 contained the following amounts: Sales Cost of Goods Sold Wage Expense Depreciation Expense Interest Expense $ 474,250 $252,000 53,000 36,500 12,000 Amortization Expense 1,000 Other Expenses 35,000 (389,500) Consolidated Net Income Income to Noncontrolling Interest $ 84,750 (9,250) Income to Controlling Interest $ 75,500 Pear and Sugar paid dividends of $31,000 and $21,000, respectively, in 20X3.