Allison Corporation acquired all of the outstanding voting stock of Mathias, Inc., on January $1,2017,$ in exchange for $$5,875,000$ in cash. Allis intends to maintain Mathias as a wholly owned subsidiary. Both companies have December $31$ fiscal yem. ends. At the acquisition date, Mathias's stockholders' equity was $$2,000,000$ including retained earnings of $$1,500,000.$ Undervalued assets include $$800,000$ in unpatented technology with $8-$year remaining life and $$2,500,000$ in patents with $10-$year remaining life. In addition, undervalued long$-$term debt amounted to $$100,000$ with $5$ year remaining life.

Post$-$acquisition, Allison employs the equity method to account for its investment in Mathias. During the two years following the business combination, Mathias reports the following income and dividends:

$\backslash$table$[[2017,$Income,Dividends$],[2018,$$$480,000,$$$25,000$