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$3.$

During $20$X$3,$ Soda sold inventory purchased for $$60,000$ to Pop for $$90,000,$ and Pop resold all but $$24,000$ of its purchase. On March $10,20$X$3,$ Pop sold inventory purchased for $$15,000$ to Soda for $$30,000.$ Soda sold all but $$7,600$ of the inventory prior to December $31,20$X$3.$ Assume Pop uses the fully adjusted equity method, that both companies use straight$-$line depreciation, and that no property, plant, and equipment has been purchased since the acquisition.