May 16, 2017 January 1, 2016, Rand Corp. issued shares of its stock to acquire all of the outstanding common common stock of Spaulding Inc. Spaulding's book value was only si40,000 at the time, but Rand issued 12,000 shares having a par value of$1 per share and a fair value of $20 per share. Rand was willing convey these shares because it felt that buildings (ten to year life) were undervalued on Spaulding's records by S60,000 while equipment (five-year life) was undervalued by $25,000. Any consideration transferred over fair value of identified net assets acquired is assigned to goodwill. Following are the individual financial records for these two companies for the year ended December 31, 2019. Rand Spaulding Corp. Revenues 372,000 $108,000 Expenses Equity in subsidiary earnings 25.000 Net income 133,000 36,000 Retained earnings, January 1, 2019 765,000 $102,000 Net income (above) 133,000 36,000 Dividends paid (84.000) (24.000) Retained earnings, December 31, 2019 8u4,000 $u4,000 Current assets 150,000 22,000 Investment in Spaulding Inc. 242,000 Buildings (net) 525,000 85,000 -389.250 9,0 Equipment (net)