The individual financial statements for GNB and KNT for the year ending December 31, 2019, follow. GNB acquired a 60 percent interest in KNT on January 1, 2018, in exchange for various considerations totaling $450,000. At the acquisition date, the fair value of the noncontrolling interest was $300,000 and KNT's book value was $590,000. KNT had developed internally a customer list that was not recorded on its books but had an acquisition- date fair value of $160,000. This intangible asset is being amortized over 20 years. GNB sold KNT land with a book value of $75,000 on January 2, 2018, for $150,000. KNT still holds this land at the end of the current year. KNT regularly transfers inventory to GNB. In 2018, it shipped inventory costing $126,000 to GNB at a price of $210,000. During 2019, intra-entity shipments totaled $260,000, although the original cost to KNT was only $182,000. In each of these years, 20 percent of the merchandise was not resold to outside parties until the period following the transfer. GNB owes KNT $35,000 at the end of 2019. Revenues COGS GNB (860,000) 560,000 KNT (560,000) 360,000 55,000 Operating expense Equity in earnings of KNT Net income Net income attributable to NCI Net income attributable to CI 160,000 (82,920) (222,920) (145,000) Retained earnings, 1/1 GNB (1,086,120) Retained earnings, 1/1 KNT (650,000) Net income (above) Dividends declared Retained earnings, 12/31 (222,920) 145,000 (1,164,040) (145,000) 55,000 (740,000) Cash Accounts receivable Inventory Investment in KNT 175,000 368,000 450,000 1,346,040 70,000 470,000 380,000 170,000 502,000 450,000 360,000 Land Buildings & Equipment Customer list Total assets 3,011,040 1,730,000 Liabilities Common stock APIC Retained earnings, 12/31/19 (above) NCI, 1/1 (585,000) 510,000 (1,262,000) (1,400,000) (100,000) (1,164,040) (740,000) NCI 12/31 Total liabilities and equities (3,011,040) (1,730,000)