On January 1, 2014, McIlroy, Inc., acquired a 60 percent interest in the common stock of Stinson, Inc., for $372,000. Stinsons book value on that date consisted of common stock of $100,000 and retained earnings of $220,000. Also, the acquisition-date fair value of the 40 percent noncontrolling interest was $248,000. The subsidiary held patents (with a 10-year remaining life) that were undervalued within the companys accounting records by $70,000 and an unrecorded customer list (15-year remaining life) assessed at a $45,000 fair value. Any remaining excess acquisition-date fair value was assigned to goodwill. Since acquisition, McIlroy has applied the equity method to its Investment in Stinson account and no goodwill impairment has occurred. At year end, there are no intra-entity payables or receivables.

Intra-entity inventory sales between the two companies have been made as follows:

Year	Cost to McIlroy	Transfer Price to Stinson	Ending Balance (at transfer price)
2014	120,000	150,000	50,000
2015	112,000	160,000	40,000

The individual financial statements for these two companies as of December 31, 2015, and the year then ended follow:

	McIlroy, Inc.		Stinson, Inc.
Sales	$	(700,000)	$	(335,000)
Cost of goods sold		460,000		205,000
Operating expenses		188,000		70,000
Equity earnings in Stinson		(28,000)		0
Net income	$	(80,000)	$	(60,000)
Retained earnings, 1/1/15	$	(695,000)	$	(280,000)
Net income (above)		(80,000)		(60,000)
Dividends declared		45,000		15,000
Retained earnings, 12/31/15	$	(730,000)	$	(325,000)
Cash and receivables	$	248,000	$	148,000
Inventory		233,000		129,000
Investment in Stinson		411,000		0
Buildings (net)		308,000		202,000
Equipment (net)		220,000		86,000
Patents (net)		0		20,000
Total assets	$	1,420,000	$	585,000
Liabilities	$	(390,000)	$	(160,000)
Common stock		(300,000)		(100,000)
Retained earnings, 12/31/15		(730,000)		(325,000)
Total liabilities and equities	$	(1,420,000)	$	(585,000)

1. Show how the the following consolidated balances for 2015 are calculated: a)Consolidated cost of goods sold b)Consolidated inventory c)Consolidated patent 2. What is the consolidated balance for goodwill on January 1,2014?