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 $20.50 per share). As of that date, Bradford had stockholders' equity totaling $147,200 Land shown on Bradford's accounting records was undervalued by $12.200. Equipment (with a five-year remaining life) was undervalued by $6,000. A secret formula developed by Bradford was appraised at $39,600 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 Allen Company $ (731,000) 242,000 165,000 (64,770) $ (388,770) $ (744,000) (388,770) 175,500 Retained earnings,12/31/21 $ (957,270) $ 408,000 259,350 Bradford Company $ (223,750) 83,500 72,300 $ (67,950) $ (124,500) (67,950) 40,000 $ (152,450) $ 113,500 Current assets Investment in Bradford Company Land Buildings and equipment (net) Total assets Current liabilities Common stock Additional paid-in capital Retained earnings, 12/31/21 506,000 872,000 $ 2,045,350 $ (398,080) (600,000) (90,000) (957,270) 59,700 165,000 $ 338,200 $ (120,750) (60,000) (5,000) (152,450)