Plate has owned 70% of Saucer for the past five years, and at the time of purchase, the book value of Saucer's assets and liabilities equaled the fair value. The cost of the 70% investment was equal to 70% of the book value of Saucer's net assets. At the time of purchase, the fair values and book values of Saucer's assets and liabilities were equal. Presented below are several figures reported for Plate Corporation and Saucer Industries as of December 31, 20X4: Plate Saucer Inventory $120,000 $60,000 Sales 200,000 140,000 Cost of Goods Sold 130,000 80,000 Expenses 40,000 30,000 In 20X3, Saucer sold inventory to Plate which had cost $40,000 for $60,000. 25% of this inventory remained on hand at December 31, 20X3, but was sold in 20X4. In 20X4, Saucer sold inventory to Plate which had cost $30,000 for $45,000. 40% of this inventory remained unsold at December 31, 20X4