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 $21.00 per share). As of that date, Bradford had stockholders' equity totaling $164,550. Land shown on Bradford's accounting records was undervalued by $17,400. Equipment (with a five-year remaining life) was undervalued by $6,250. A secret formula developed by Bradford was appraised at $21,800 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 Current assets Investment in Bradford Company Allen Company $ (728,000) 241,000 150,000 (129,510) $ (466,510) $ (600,000) (466,510) Bradford Company $(298,750) 113,500 53,400 (131,850) (104,400) (131,850) 40,000 175,500 $ (971,010) $ (196,250) $ 334,000 $ 102,000 295,000 484,000 724,000 0 Land Buildings and equipment (net) Total assets Current liabilities Common stock Additional paid-in capital Retained earnings, 12/31/21 Total liabilities and equity $ 1,837,000 $ (175,990) (600,000) (90,000) (971,010) $(1,837,000) 65,700 165,000 $332,700 $ (71,450) (60,000) (5,000) (196,250) $ (332,700)