On December $31,$ Pacifica, Incorporated, acquired $100$ percent of the voting stock of Seguros Company. Pacifica will maintain Seguros as a wholly owned subsidiary with its own legal and accounting identity. The consideration transferred to the owner of Seguros included $62,110$ newly issued Pacifica common shares $($ $$20$ market value, $$5$ par value$)$ and an agreement to pay an additional $$130,000$ cash if Seguros meets certain project completion goals by December $31$ of the following year. Pacifica estimates a $50$ percent probability that Seguros will be successful in meeting these goals and uses a $4$ percent discount rate to represent the time value of money.

Immediately prior to the acquisition, the following data for both firms were available:

$\backslash$table$[[$Revenues Items,Pacifica,$\backslash$table$[[$Seguros Book$],[$Values$]],\backslash$table$[[$Seguros Fair$],[$Values$]]],[$Revenues$,$$ $(1,490,000),0,,0],[$Expenses$,1,043,000,0,,0],[$Net income,$ $(447,000),0,,0],[$Retained earnings, $1/1,$$ $(1,040,000$