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The individual financial statements for Abbey Company and Bellstar Company for the year ending December $31,2024,$ follow. Abbey acquired a $60$ percent interest in Bellstar on January $1,2023,$ in exchange for various considerations totaling $$780,000.$ At the acquisition date, the fair value of the noncontrolling interest was $$520,000$ and Bellstar$$s book value was $$1,040,000.$ Bellstar had developed internally a trademark that was not recorded on its books but had an acquisition$-$date fair value of $$260,000.$ This intangible asset is being amortized over $20$ years. Abbey uses the partial equity method to account for its investment in Bellstar.

Abbey sold Bellstar land with a book value of $$80,000$ on January $2,2023,$ for $$170,000.$ Bellstar still holds this land at the end of the current year.

Bellstar regularly transfers inventory to Abbey. In $2023,$ it shipped inventory costing $$217,000$ to Abbey at a price of $$310,000.$ During $2024,$ intra$-$entity shipments totaled $$360,000,$ although the original cost to Bellstar was only $$234,000.$ In each of these years, $20$ percent of the merchandise was not resold to outside parties until the period following the transfer. Abbey owes Bellstar $$40,000$ at the end of $2024.$

Items Abbey Company Bellstar Company

Sales $ $(960,000)$ $ $(660,000)$

Cost of goods sold $660,000460,000$

Operating expenses $150,00035,000$

Equity in earnings of Bellstar $(99,000)0$

Net income $ $(249,000)$ $ $(165,000)$

Retained earnings, $1/1/24$ $ $(1,276,000)$ $ $(700,000)$

Net income $($above$)(249,000)(165,000)$

Dividends declared $150,00050,000$

Retained earnings, $12/31/24$ $ $(1,375,000)$ $ $(815,000)$

Cash $ $185,000$ $ $70,000$

Accounts receivable $388,000570,000$

Inventory $550,000480,000$

Investment in Bellstar $981,0000$

Land $130,000550,000$

Buildings and equipment $($net$)512,000460,000$

Total assets $ $2,746,000$ $ $2,130,000$

Liabilities $ $(621,000)$ $ $(755,000)$

Common stock $(750,000)(480,000)$

Additional paid$-$in capital $0(80,000)$

Retained earnings, $12/31/24(1,375,000)(815,000)$

Total liabilities and equities $ $(2,746,000)$ $ $(2,130,000)$

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