On January 1, 2023, Pulaski, Incorporated, acquired a 60 percent interest in the common stock of Sheridan, Incorporated, for $384,600. Sheridan's book value on that date consisted of common stock of $100,000 and retained earnings of $227,300. Also, the acquisition-date fair value of the 40 percent noncontrolling interest was $256,400. The subsidiary held patents (with a 10 -year remaining life) that were undervalued within the company's accounting records by $78,400 and also had unpatented technology (15year estimated remaining life) undervalued by $54,300. Any remaining excess acquisition-date fair value was assigned to an indefinitelived trade name. Since acquisition, Pulaski has applied the equity method to its Investment in Sheridan account. At year-end, there are no intra-entity payables or receivables. Intra-entity inventory sales between the two companies have been made as follows: \table[[,Cost to,Transfer Price,\table[[Ending Balance],[(at transfer]]],[Year,Pulaski,to Sheridan,price)],[2023,$127,200,$159,000,$53,000
On January 1, 2023, Pulaski, Incorporated, acquired a 60 percent interest in the common stock of Sheridan, Incorporated, for $384,600. Sheridan's book value on that date consisted of common stock of $100,000 and retained earnings of $227,300. Also, the acquisition-date fair value of the 40 percent noncontrolling interest was $256,400. The subsidiary held patents (with a 10 -year remaining life) that were undervalued within the company's accounting records by $78,400 and also had unpatented technology (15year estimated remaining life) undervalued by $54,300. Any remaining excess acquisition-date fair value was assigned to an indefinitelived trade name. Since acquisition, Pulaski has applied the equity method to its Investment in Sheridan account. At year-end, there are no intra-entity payables or receivables. Intra-entity inventory sales between the two companies have been made as follows: \table[[,Cost to,Transfer Price,\table[[Ending Balance],[(at transfer]]],[Year,Pulaski,to Sheridan,price)],[2023,$127,200,$159,000,$53,000
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