1. Choco Co. acquired 90% of Allie Co. (Allie has total of 100,000 shares outstanding and Choco acquired 90,000 shares) for $810,000 ($9/share) on December 31, 2018.The market value of Allie's stock was$9/share.Choco usesequity methodto report its investment in Allie.

12/31/2018 Choco Co. Allie Co. BV BV FV Current assets $1,368,000 $238,000 $238,000 Equipment [8 years] 164,000 280,000 360,000 Buildings [20 years] 274,000 210,000 270,000 Liabilities Paste $(546,000) $(168,000) $(168,000) Common stock (300,000) (150,000) Additional paid in capital (460,000) (350,000) Retained earnings [12/31/18] (500,000) (60,000) *note: numbers in this table in () refer to credit balance During 2019, Allie earned net income of $180,000 and paid dividends of $22,000