Allen Company acquired 100 percent of Bradford Company's voting stock on January 1, 2014, by issuing 10,000 shares of its $10 par value common stock (having a fair value of $18.5 per share). As of that date, Bradford had stockholders' equity totaling $128,100. Land shown on Bradford's accounting records was undervalued by $15,800. Equipment (with a five-year remaining life) was undervalued by $8,300. A secret formula developed by Bradford was appraised at $32,800 with an estimated life of 20 years. Following are the separate financial statements for the two companies for the year ending December 31, 2018. There were no intra entity payables on that date. Credit balances are indicated by parentheses Allen Bradford Company $ (509,000 Company Revenues Cost of goods sold Depreciation expense Subsidiary earnings 168,000 179,250 (77,550) (241,250) 90,500 69,900 $ (239,300 $ (856,000) (239, 300) (80,850) $ (119,100) (80,850) 40,000 $ (919,800 (159,950) $ 93,500 Net income Retained earnings, 1/1/18 Net income (above) Dividends declared 175,500 Retained earnings,12/31/18 Current assets Investment in Bradford Company Land Buildings and equipment (net) 280,000 265,350 64,800 182,000 $ 340, 300 S (115,350) (60,000) (5,000) 919,800)(159,950) $ (1,841,350 (340,300) 510,000 786,000 $ 1,841,350 S (231,550) Total assets Current liabilities Common stock Additional paid-in capital Retained earnings, 12/31/18 (600,000) (90,000) Total liabilities and equity