Protecto Corporation purchased 70 percent of Strand Companys outstanding shares on January 1, 20X1, for $32,500 more than book value. At that date, the fair value of the noncontrolling interest was $15,500 more than 30 percent of Strands book value. The full amount of the differential is considered related to patents and is being amortized over an eight-year period. In 20X1, Strand purchased a piece of land for $56,000 and later in the year sold it to Protecto for $80,000. Protecto is still holding the land as an investment. During 20X3, Protecto bonds with a value of $155,000 were exchanged for equipment valued at $155,000. On January 1, 20X3, Protecto held inventory purchased previously from Strand for $48,000. During 20X3, Protecto purchased an additional $102,000 of goods from Strand and held $58,000 of this inventory on December 31, 20X3. Strand sells merchandise to the parent at cost plus a 25 percent markup. Strand also purchases inventory items from Protecto. On January 1, 20X3, Strand held inventory it had previously purchased from Protecto for $16,100, and on December 31, 20X3, it held goods it had purchased from Protecto for $8,400 during 20X3. Strands total purchases from Protecto in 20X3 were $34,000. Protecto sells inventory to Strand at cost plus a 40 percent markup.