The following additional information is available: a. Marley initially acquires 60% of the outstanding common stock of Foster in 2017. There is no difference between the cost and book value of the net...

The following additional information is available:

a. Marley initially acquires 60% of the outstanding common stock of Foster in 2017. There is no difference between the cost and book value of the net assets acquired. As of December 31, 2019, the percentage owned is 90%. An analysis of the investment in Foster Corporation account is as follows:

Foster net income is earned ratably during the year.

On December 15, 2019, Foster declares a cash dividend of $4 per share of common stock, payable to shareholders on January 7, 2020.

b. During 2019, Marley sells merchandise to Foster. Marley has a 25% gross profit, and the sale is made at $80,000. Foster’s inventory at December 31, 2019, includes merchandise purchased from Marley for $40,000.