PROBLEM INFORMATION Pat buys Sat, 80%, on January 1, 2017 for $108,000 when Sat had $100,000 in Capital Stock and $10,000 in R/E. The price paid for the 80% acquisition was proportionate to S's total fair value. The excess is allocated to unrecorded Patents with 10 year life; Pat owes Sat $4K in 2020; Intra entity transactions: Inventory: Sales in 2020:$5K from Sat to Pat; unrealized profits in 2019 $2K and 2020=$1K. Plant Assets: Sat sold to Pat a plant asset in 1/2019, with a book value of $40K (original cost $90 with $50 accumulated depreciation) and useful life of 5 years, for $60K. Bonds: Sat purchased $100K, 10% bonds of P for $106K on 1/2020 when P had $100K, 10% bonds with $3K unamortized premium on them; bonds mature in December 31, 2022.