aztec corporation purchased 70 of the outstanding shares of inca limited on january 1 20×2 at a cost of 80000 aztec has always used the cost method to

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Additional Information
1. During 20X5, Inca made a cash payment of $ 2,000 per month to Aztec for management fees, which is included in Inca’s “other expenses.”
2. During 20X5, Aztec made intercompany sales of $ 100,000 to Inca. The December 31, 20X5, inventory of Inca contained goods purchased from Aztec amounting to $ 30,000. These sales had a gross profit of 35%.
3. On April 1, 20X5, Aztec acquired land from Inca for $ 40,000. This land had been recorded on Inca’s books at a net carrying value of $ 20,000. Aztec paid for the land by signing a $ 40,000 note payable to Inca, bearing interest at 8%. Interest for 20X5 was paid by Aztec in cash on December 31, 20X5. This land was still being held by Aztec on December 31, 20X5.
4. The fair value of the consolidated goodwill remained unchanged from January 1, 20X2, to July 1, 20X5. On July 1, 20X5, a valuation was performed, indicating that the fair value of consolidated goodwill was $ 3,500.
5. Inca and Aztec pay taxes at a 40% rate. Assume that none of the gains or losses were capital gains or losses. Ignore the impact of future taxes for all transactions.