Placid Lake Corporation acquired 70 percent of the outstanding voting stock of Scenic, Inc., on January 1, 2020, when Scenic had a net book value of $650,000. Any excess fair value was assigned to intangible assets and amortized at a rate of $8,000 per year. Placid Lake's 2021 net income before consideration of its relationship with Scenic (and before adjustments for intra-entity sales) was $550,000. Scenic reported net income of $360,000. Placid Lake declared $180,000 in dividends during this period; Scenic paid $65,000. At the end of 2021, selected figures from the two companies' balance sheets were as follows: Inventory Land Equipment (net) Placid Lake $ 390,000 850,000 650,000 Scenic $ 115,000 450,000 550,000 During 2020, intra-entity sales of $200,000 (original cost of $92,000) were made. Only 10 percent of this inventory was still held within the consolidated entity at the end of 2020. In 2021, $340,000 in intra-entity sales were made with an original cost of $84,000. Of this merchandise, 20 percent had not been resold to outside parties by the end of the year.