QUESTION $5$

Phillips Company purchased a $90\%$ interest in Standards Corporation for $$2,340,000$ on January $1,2022.$ Standards Corporation had $$1,650,000$ of common stock and $$1,050,000$ of retained earnings on that date.

The following values were determined for Standards Corporation on the date of purchase:

$\backslash$table$[[,$Book Value,,Fair Value$],[$Inventory$,$$$240,000,,$$$300,000$