Prime Corporation acquired 80 percent of Steak Companys voting shares on January 1, 20X4, for $280,000 in cash and marketable securities. At that date, the noncontrolling interest had a fair value of $70,000 and Steak reported net assets of $300,000. Assume Prime uses the fully adjusted equity method. Trial balances for the two companies on December 31, 20X7, are as follows

Item	Debit		Credit		Debit		Credit
Cash	$	130,300					$	10,000
Accounts Receivable		80,000						70,000
Inventory		170,000						110,000
Buildings & Equipment		600,000						400,000
Investment in Steak Company		293,000
Cost of Goods Sold		416,000						202,000
Depreciation Expense		30,000						20,000
Other Expenses		24,000						18,000
Dividends Declared		50,000						25,000
Accumulated Depreciation				$	310,000					$	120,000
Accounts Payable					100,000						15,200
Bonds Payable					300,000						100,000
Bond Premium											4,800
Common Stock					200,000						100,000
Additional Paid-in Capital											20,000
Retained Earnings					337,500						215,000
Sales					500,000						250,000
Other Income					20,400						30,000
Income from Steak Company					25,400
Total	$	1,793,300		$	1,793,300		$	855,000		$	855,000

1. The full amount of the differential at acquisition was assigned to buildings and equipment with a remaining 10-year economic life.
2. Prime and Steak regularly purchase inventory from each other. During 20X6, Steak Company sold inventory costing $40,000 to Prime Corporation for $60,000, and Prime resold 60 percent of the inventory in 20X6 and 40 percent in 20X7. Also in 20X6, Prime sold inventory costing $20,000 to Steak for $26,000. Steak resold two-thirds of the inventory in 20X6 and one-third in 20X7.
3. During 20X7, Steak sold inventory costing $30,000 to Prime for $45,000, and Prime sold items purchased for $9,000 to Steak for $12,000. Before the end of the year, Prime resold one-third of the inventory it purchased from Steak in 20X7. Steak continues to hold all the units purchased from Prime during 20X7.
4. Steak owes Prime $10,000 on account on December 31, 20X7.
5. Assume that both companies use straight-line depreciation and that no property, plant, and equipment has been purchased since the acquisition.

Show how Prime Corp. determined the $293,000 Investment in Steak account balance. Assume that Prime defers 100 percent of downstream intra-entity profits against its share of Steaks income.