Following are separate financial statements of Michael Company and Aaron Company as of December 31, 2018 (credit balances indicated by parentheses). Michael acquired all of Aaron's outstanding voting stock on January 1, 2014, by issuing 20,000 shares of its own $1 par common stock. On the acquisition date, Michael Company's stock actively traded at $36 per share Michael Company 12/31/18 Aaron Company 12/31/18 (742,000) 336,000 133,200 (5,000 (406,500) Revenues Cost of goods sold Amortization expense Dividend income 158,250 93,000 s (277,800) (155,250) $(797,000) (155,250) 5,000 $ (947,250) Net income Retained earnings, 1/1/18 Net income (above) Dividends declared (926,000) (277,800) 90,000 $ (1,113,800) $149,000 Retained earnings, 12/31/18 Cash Receivables Inventory Investment in Aaron Company Copyrights Royalty agreements 16,400 295,000 371,000 457,000 657,000 720,000 522,000 982,000 388,000 448,000 $1,518,400 $3,487,000 $ (1,273,200) Total assets Liabilities Preferred stock s (441,150) (300,000)