Pop Corporation acquired

$70$

$$percent of Soda Company's voting common shares on January

$1$

$,$

$20$

X

$2$

$,$

$$for $

$108$

$,$

$500$

$.$

$$At that date, the noncontrolling interest had a fair value of $

$46$

$,$

$500$

$$and Soda reported $

$70$

$,$

$000$

$$of common stock outstanding and retained earnings of $

$30$

$,$

$000$

$.$

$$The differential is assigned to buildings and equipment, which had a fair value $

$20$

$,$

$000$

$$higher than book value and a remaining

$10$

$-$

year life, and to patents, which had a fair value $

$35$

$,$

$000$

$$higher than book value and a remaining life of five years at the date of the business combination. Trial balances for the companies as of December

$31$

$,$

$20$

X

$3$

$,$

$$are as follows:

Item Pop Corporation Soda Company

Debit Credit Debit Credit

Cash and Accounts Receivable $

$15$

$,$

$400$

$$ $

$21$

$,$

$600$

$$

Inventory

$165$

$,$

$00035$

$,$

$000$

$$

Land

$80$

$,$

$00040$

$,$

$000$

$$

Buildings and Equipment

$340$

$,$

$000260$

$,$

$000$

$$

Investment in Soda Company

$109$

$,$

$600$

$$

Cost of Goods Sold

$186$

$,$

$00079$

$,$

$800$

$$

Depreciation Expense

$20$

$,$

$00015$

$,$

$000$

$$

Interest Expense

$16$

$,$

$0005$

$,$

$200$

$$

Dividends Declared

$30$

$,$

$00015$

$,$

$000$

$$

Accumulated Depreciation $

$140$

$,$

$000$

$$ $

$80$

$,$

$000$

Accounts Payable

$92$

$,$

$40035$

$,$

$000$

Bonds Payable

$200$

$,$

$000100$

$,$

$000$

Bond Premium

$1$

$,$

$600$

Common Stock

$120$

$,$

$00070$

$,$

$000$

Retained Earnings

$127$

$,$

$90060$

$,$

$000$

Sales

$260$

$,$

$000125$

$,$

$000$

Other Income

$13$

$,$

$600$

$$

Income from Soda Company

$8$

$,$

$100$

$$

$$ $

$962$

$,$

$000$

$$$

$962$

$,$

$000$

$$$

$471$

$,$

$600$

$$$

$471$

$,$

$600$

On December

$31$

$,$

$20$

X

$2$

$,$

$$Soda purchased inventory for $

$32$

$,$

$000$

$$and sold it to Pop for $

$48$

$,$

$000$

$.$

$$Pop resold $

$27$

$,$

$000$

$$of the inventory

$($

i

$.$

e

$.$

$,$

$$$

$27$

$,$

$000$

$$of the $

$48$

$,$

$000$

$$acquired from Soda

$)$

$$during

$20$

X

$3$

$$and had the remaining balance in inventory at December

$31$

$,$

$20$

X