On January Mcllroy, Inc., acquired a percent interest in the common stock of Stinson, Inc., for $ Stinson's book value on that date consisted of common stock of $ and retained earnings of $ Also, the acquisitiondate fair value of the percent noncontrolling interest was $ The subsidiary held patents with a year remaining life that were undervalued within the company's accounting records by $ and an unrecorded customer list year remaining life assessed at a $ fair value. Any remaining excess acquisitiondate fair value was assigned to goodwill. Since acquisition, Mcllroy has applied the equity method to its Investment in Stinson account and no goodwill impairment has occurred. At yearend, there are no intraentity payables or receivables.
Intraentity inventory sales between the two companies have been made as follows:
tableTransfer Price,Ending BalanceYearCost to McIlroy,to Stinson,at transfer price$$$
