In Chapter 3 Chapter 3 6 Alison C 4 Alison Corporation acquired all of the outstanding voting stock of Mathias, Inc., on January 1,2017, in exchange for $6.182.500 in cash Allison intends to maintain Mathias as a wholly owned subsidiary Both companies have December 3t fiscal year-ends. At the ecquisition date, Mathias's stockholders' equity was $2.075,000 including retained earnings of $1575,000 20 At the acquisition date, Allison prepared the following fair value allocation schedule for its newly acquired subsidiary Kathias stockholders' equity 920,400 to incresse leag-term debt (undervalued. S-year remaining 1ie Post-acquisition, Allison employs the equity method to account for its investment in Mathlas. During the two years following the eferencesbusiness combination, Mthias reports the following income and dvidends 2017 451,175 $2s.eao No asset impairments have occurred since the acquisition date ndividual fnancial statements for each company as of December 31, 2018, appear below. Parentheses indicate credit balances Dividends declared were paid in the same period Cost of goods sold 22,000 5,000 taterest expense Equity earnings in Mathis of Retaised Eareigs 165,500 ,500 ,025.090 Accounts receivable