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On January 1, 2015, Simpsons purchased 75% of the outstanding stock of Bart for $200,000. On that date the noncontrolling interest had a fair value of $60,625. Total equity of Bart on the acquisition date was $100,000. There were two fair value adjustments on the date of acquisition: 1) an unrecognized patent (5-year remaining useful life) had a fair value of $30,000; 2) Equipment had a fair value in excess of carrying value of $40,000 (10-year remaining useful life). The remainder of the excess is attributable to goodwill.

Net income from bart at 12/31/21 $35,000

Dividend from bart at 12/31/21 - $4,000

Calculate equity in earnings for 12/31/2021

1. Bart sells inventory to Simpsons regularly. Sales for the last three years include: - In 2020 , inventory with a cost of $30,000 was sold for $50,000. Simpsons sold 70% or the inventory in 2020. - In 2021 , inventory with a cost of $50,000 was sold for $90,000. Simpsons sold 90% of the inventory in 2021. 2. On January 1, 2019, Simpsons sold land to Bart. The land, which had a cost of $25,000, was sold to Bart for $40,000. In 2021, Bart sold the land to an external company for $60,000. 3. The goodwill from the acquisition was found to be impaired by $10,000 in 2018 . No other goodwill impairments resulted prior to 2021. In 2021, the goodwill was found to be impaired an additional $20,000. 4. Bart purchased available-for-sales securities in 2020 for $50,000. The fair value for this investment was $52,000 at December 31, 2020 and $45,000 at December 31, 2021

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