Problem $5-13($Algo$)($LO $5-3,5-4,5-5)$

On January $1,2023,$ Corgan Company acquired $70$ percent of the outstanding voting stock of Smashing. Incorporated, for a total of $$1,435,000$ in cash and other consideration. At the acquisition date, Smashing had common stock of $$920,000,$ retained earnings o $$470,000,$ and a noncontrolling interest fair value of $$615,000.$ Corgan attributed the excess of fair value over Smashing's book valu to various covenants with a $20-$year remaining life. Corgan uses the equity method to account for its investment in Smashing.

During the next two years, Smashing reported the following:

$\backslash$table$[[$Items$,$Dividend's,Inventory Purchases,$],[2023,$Net Income,Declared,from Corgan$],[2024,$$$370,000,$$$57,000,$$$320,000$