Nascent, Inc., acquires 60 percent of Sea-Breeze Corporation for $414,000 cash on January 1, 2015. The remaining 40 percent of the Sea-Breeze shares traded near a total value of $276,000 both before and after the acquisition date. On January 1, 2015 Sea-Breeze had the following assets and liabilities Current assets Land Buildings (net) (6-year remaining life) Equipment (net) (4-year remaining life) Patent (10-year remaining life) Liabilities Book Value 150,000 200,000 300,000 300,000 Fair Value 150,000 200,000 360,000 280,000 100,000 (400, 000) (400,000) The companies' financial statements for the year ending December 31, 2018, follow: Sea-Breeze (600,000 (300,000) 210,000 Nascent Revenues Operating expenses Investment income 410,000 42,000 Net income $ (232,000) (90,000) Retained earnings, 1/1/18 Net income Dividends declared (700,000 (300,000) (232,000) (90,000) 70,000 92,000 $ (840,000) (320,000) Retained earnings, 12/31/18 Current assets Land Buildings (net) Equipment (net) Investment in Sea-Breeze $330,000 220,000 700,000 400,000 414,000 $ 2,064,000 $ 100,000 200,000 200,000 500,000 1,000,000 Total assets Liabilities Common stock Retained earnings, 12/31/18 $ (500,000 (200,000) (480,000) (840,000)(320,000) $ (2,064,000) (1,000,000) (724,000) Total liabilities and equities