Giant acquired all of Small's common stock on January 1, 2014, in exchange for cash of $770,000. On that day, Small reported common stock of $170,000 and retained earnings of $400,000. At the acquisition date, $42,500 of the fair-value price was attributed to undervalued land while $96,000 was assigned to undervalued equipment having a 10-year remaining life. The $61,500 unallocated portion of the acquisition-date excess fair value over book value was viewed as goodwill. Over the next few years, Giant applied the equity method to the recording of this investment. Following are individual financial statements for the year ending December 31, 2018. On that date, Small owes Giant $12,100. Small declared and paid dividends in the same period. Credits are indicated by parentheses Giant Small Revenues Cost of goods sold Depreciation expense Equity in income of Small $ (1,324,600) $ (473,000) 122,000 178,000 631,000 200,000 163,400 Net income $ (657,000) $ (173,000) Retained earnings, 1/1/18 Net income (above) Dividends declared $ (1,460,000) (639,000) (657,000) (173,000) 320,090120,000 $ (1,797,000) $ (692,000) $ 298,000 164,000 Retained earnings, 12/31/18 Current assets Investment in Small Land Buildings (net) Equipment (net) Goodwil1 1,014,000 502,000 401,000 738,000 263,000 489,000 352,000 $ 2,953,000 1,268,000 Total assets Liabilities Common stock Retained earnings (above) $ (906,000) (406,000) (170,000) (250,000) 1,797,000 $ (2,953,000) 692,000) $ (1,268,000) Total liabilities and equities