Prime Company holds 80 percent of Suspect Company's stock, acquired on January 1, 20X2, for $160,000. On the acquisition date, the fair value of the noncontrolling interest was $ 40,000. Suspect reported retained earnings of $ 50,000 and had $100,000 of common stock outstanding. Prime uses the fully adjusted equity method in accounting for its investment in Suspect. Trial balance data for the two companies on December 31, 20X6, are as follows: Item Cash and Accounts Receivable Inventory Land Buildings and Equipment Investment in Suspect Company Cost of Goods Sold Depreciation and Amortization Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Bonds Payable Common Stock Retained Earnings Sales Gain on Sale of Equipment Income from Suspect Company Total Additional Information Prime Company Suspect Company Debit Credit $ 113,000 Debit $ 35,000 Credit 260,000 90,000 80,000 80,000 500,000 150,000 191,600 140,000 60,000 25,000 15,000 15,000 5,000 30,000 5,000 $ 205,000 $ 45,000 60,000 20,000 200,000 50,000 300,000 100,000 322,000 240,000 95,000 130,000 20,000 7,600 $ 1,354,600 $ 1,354,600 $ 440,000 $ 440,000 1. At the date of combination, the book values and fair values of all separately identifiable assets and liabilities of Suspect were the same. At December 31, 20X6, the management of Prime reviewed the amount attributed to goodwill as a result of its purchase of Suspect stock and concluded an impairment loss of $ 18,000 should be recognized in 20X6 and shared proportionately between the controlling and noncontrolling shareholders. 2. On January 1, 20X5, Suspect sold land that had cost $ 8,000 to Prime for $18,000. 3. On January 1, 20X6, Prime sold to Suspect equipment that it had purchased for $75,000 on January 1, 20X1. The equipment has a total economic life of 15 years and was sold to Suspect for $70,000. Both companies use straight-line depreciation. 4. There was $ 7,000 of intercompany receivables and payables on December 31, 20X6.