Allen Company acquired 100 percent of Bradford Company's voting stock on January 1, 2017, by issuing 10,000 shares of its $10 par value common stock (having a fair value of $23.50 per share). As of that date, Bradford had stockholders' equity totaling $182,100. Land shown on Bradford's accounting records was undervalued by $12,000. Equipment (with a five-year remaining life) was undervalued by $5,700. A secret formula developed by Bradford was appraised at $35,200 with an estimated life of 20 years. The following are the separate financial statements for the two companies for the year ending December 31, 2021. There were no intra-entity payables on that date. Credit balances are indicated by parentheses. Revenues Cost of goods sold Depreciation expense Subsidiary earnings Net income Retained earnings, 1/1/21 Net income (above) Dividends declared Retained earnings, 12/31/21 Allen Company $ (560,000) 185,000 192,750 (47,500) $ (229,750) $ (834,000) (229,750) 175,500 $ (888,250) Bradford Company $ (205,000) 76,000 78,600 $ (50,400) $ (108,000) (50,400) 40,000 $ (118,400)