Giant acquired all of Small's common stock on January 1, 2017, 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, $90,000 of the fair-value price was attributed to undervalued land while $50,000 was assigned to undervalued equipment having a 10-year remaining life. The $60,000 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. The following are individual financial statements for the year ending December 31, 2021. On that date, Small owes Giant $10,000. Small declared and paid dividends in the same period. Credits are indicated by parentheses. Giant Small $ (1,175,000) $ (360,000) Revenues Cost of goods sold Depreciation expense Equity in income of Small Net income Retained earnings, 1/1/21 Net income (above) Dividends declared Retained earnings, 12/31/21 Current assets Investment in Small Land Buildings (net) Equipment (net) Goodwill Total assets Liabilities 550,000 172,000 $ (1,417,000) (588,000) 310,000 90,000 130,000 (135,000) 0 $ (588,000) $ (140,000) $ (620,000) (140,000) 110,000 (650,000) 398,000 $ 318,000 995,000 0 440,000 165,000 304,000 419,000 648,000 286,000 0 $ 2,785,000 $ (1,695,000) $ 1,188,000 $ (840,000) $ (368,000)