Protects against perils such as fire, lightning, windstorms, hail, volcanic eruptions, explosions, smoke, theft, vandalism, glass breakage, and riots politics of the united states financeDemski, Inc., manufactures heating and cooling systems. It has a 75% interest in Asare Company, which manufactures thermostats, switches, and other controls for heating and cooling products. It also has a 100% interest in Demski Finance Company, created by the parent company to finance sales of its products to contractors and other consumers. The parent company's only other investment is a 25% interest in the common stock of Knechel, Inc., which produces certain circuits used by Demski, Inc., A condensed consolidated balance sheet of the entity for the current year follows.
$$
\begin{array}{cc}
\begin{array}{c}
\text{DEMSKI, INC., AND SUBSIDIARIES}\\
\text{Consolidated Balance Sheet}\\
\text{December 31 , 2019}
\end{array}\\
\hline
\begin{array}{lrr}
\text{Assets}\\
\text{Current assets}& & \$19,300,000 \\
\text{Stock investment-Influential (Knechel)}& & 2,600,000 \\
\text{Other assets }& & 71,400,000 \\
\text{Excess of cost over equity acquired in net assets of Asare Company}& & \underline{1,700,000} \\
\text{Total assets}& & \underline{\underline{\$95,000,000}} \\
\text{Liabilities and shareholders' equity }\\
\text{Current liabilities }& & \$10,300,000 \\
\text{Long-term liabilities }& & 14,200,000 \\
\text{Shareholders' equity }\\
\quad \text{Common stock }& \$50,000,000 \\
\quad \text{Retained earnings }& \underline{16,700,000} \\
\text{Demski, Inc., shareholders' equity }& 66,700,000 \\
\quad \text{Noncontrolling interests }& \underline{3,800,000}\\
\text{Total shareholders' equity }& & \underline{70,500,000} \\
\text{Total liabilities and shareholders' equity}& & \underline{\underline{\$95,000,000}} \\
\end{array}
\end{array}
$$
This balance sheet, along with other financial statements, was furnished to shareholders before their annual meeting, and all shareholders were invited to submit questions to be answered at the meeting. As chief financial officer of Demski, you have been appointed to respond to the questions at the meeting.
Answer the following shareholder question.
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