Tater Inc. acquired 100 percent of the outstanding voting shares of Tot for $2.10 million in cash on January 1^st 2022. Tots book value was $1.80 million but several assets had fair market values different from their book values as shown below.

(in thousands)	BOOK VALUE	FAIR VALUE
Inventory (to be sold within a year)	$ 360	$ 500
Equipment (4-year remaining life)	$ 180	$ 140
Land	$ 1,000	$ 1,100

Any additional excess FMV was assigned to a patent with a 5 year estimated life.

How do I account for inventory at 1/1/2022 and at the end of 12/31/2022?

SInce is going to be sold the next year, what are the JE for FMV?