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Following are several account balances taken from the records of Karson and Reilly as of December 31, 2018. A few asset accounts have been omitted

Following are several account balances taken from the records of Karson and Reilly as of December 31, 2018. A few asset accounts have been omitted here. All revenues, expenses, and dividend declarations occurred evenly throughout the year. Annual tests have indicated no goodwill impairment. Karson Reilly Sales $ (800,000) $(500,000) Cost of goods sold 400,000 280,000 Operating expenses 200,000 100,000 Investment income not given 0 Retained earnings, 1/1 (1,400,000) (700,000) Dividends declared 80,000 20,000 Trademarks 600,000 200,000 Royalty agreements 700,000 300,000 Licensing agreements 400,000 400,000 Liabilities (500,000) (200,000) Common stock ($10 par value) (400,000) (100,000) Additional paid-in capital (500,000) (600,000) On July 1, 2018, Karson acquired 80 percent of Reilly for $1,330,000 cash consideration. In addition, Karson agreed to pay additional cash to the former owners of Reilly if certain performance measures are achieved after three years. Karson assessed a $30,000 fair value for the contingent performance obligation as of the acquisition date and as of December 31, 2018. On July 1, 2018, Reillys assets and liabilities had book values equal to their fair value except for some trademarks (with five-year remaining lives) that were undervalued by $150,000. Karson estimated Reillys total fair value at $1,700,000 on July 1, 2018. For the following items, what balances would be reported on Karsons December 31, 2018, consolidated financial statements? page 201 Sales Consolidated Net Income Expenses Retained Earnings, 1/1 Noncontrolling Interest in Trademarks Subsidiarys Net Income Goodwill

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