Following are several account balances taken from the records of Karson and Reilly as of December 31, 2011. A few asset accounts have been omitted here. All revenues, expenses, and dividends occurred evenly throughout the year. Annual tests have indicated no goodwill impairment.

On July 1, 2011, Karson acquired 80 percent of Reilly for \($1,330,000\) cash consideration. In addition, Karson agreed to pay additional cash to the former owners of Reilly if certain performance measures are achieved after three years. Karson assessed a \($30,000\) fair value for the contingent performance obligation as of the acquisition date and as of December 31, 2011.
On July 1, 2011, Reilly’s assets and liabilities had book values equal to their fair value except for some trademarks (with 5-year remaining lives) that were undervalued by \($150,000\). Karson estimated Reilly’s total fair value at \($1,700,000\) on July 1, 2011.
For a consolidation prepared at December 31, 2011, what balances would be reported for the following?

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Sales Cost of goods sold Operating expenses Investment income Retained earnings, 1/1 Dividends Trademarks Karson $ (800,000) 400,000 Reilly $(500,000) 280,000 200,000 100,000 not given (1,400,000) -0- (700,000) 80,000 20,000 600,000 200,000 Royalty agreements 700,000 300,000 Licensing agreements 400,000 400,000 Liabilities (500,000) (200,000) Common stock ($10 par value) (400,000) (100,000) Additional paid-in capital (500,000) (600,000)