Gamma acquired 60% of Delta's shares on January 1, 2024 paying $500,000 in cash. Delta's balance sheet as of January 1, 2024 and the fair value of Delta's assets and liabilities were as follows: BALANCE SHEET Cash Accounts receivable Inventory PPE net Assets Accounts payable LT Liabilities Common stock Retained earnings Liabilities + Equity DELTA-Book Value Jan 1, 2024 20,000 30,000 250,000 510,000 810,000 130,000 300,000 480,000 (100,000) 810,000 DELTA -Fair Value Jan 1, 2024 20,000 8,000 180,000 550,000 758,000 130,000 300,000 430,000 The useful life of the plant equipment is 5 years starting January 1, 2024. The turnover of short- term assets and liabilities is less than one year. Additionally, during the due-diligence process, Gamma found out that Delta has unrecorded liabilities for product warranties for $100,000 that will be likely exercised over 4 years starting January 1, 2024. During 2024, Delta's Net Income was $355,000 and Delta paid $50,000 in dividends. In addition, as of December 31, 2024 Gamma determined a goodwill impairment charge equal to $90,000 related to Delta's acquisition. Below are Gamma's and Delta's Balance Sheets and Income Statements for the year ended December 31, 2024: BALANCE SHEET Cash Accounts receivable Inventory Investment in Delta PPE net Assets Accounts payable LT Liabilities Common stock Retained earnings Liabilities + Equity INCOME STATEMENT Revenue Investment Income COGS Depreciation Expenses Net Income GAMMA Dec 31, 2024 285,000 180,000 520,000 694,400 1,200,000 2,879,400 550,000 1,100,000 300,000 929,400 2,879,400 GAMMA 2024 1,000,000 224.400 1,224,400 800,000 120,000 50,000 970,000 254,400 DELTA Dec 31, 2024 200,000 385,000 400,000 408,000 1,393,000 408,000 300,000 480,000 205,000 1,393,000 DELTA 2024 910.000 910,000 408,000 102,000 45,000 555,000 355,000 Using the information provided above, please answer the following questions: