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 $59,530$ 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$[[$Items$,$Pacifica,$\backslash$table$[[$Seguros Book$],[$Values$]],\backslash$table$[[$Seguros Fair$],[$Values$]]],[$Revenues$,$$$(2,150,000),0,0],[$Expenses$,1,505,000,0,0],[$Net income,$$(645,000),0,0],[$Retained earnings, $\frac{1}{1},$$$(1,013,000),0,0],[$Net income,$(645,000),0,0],[$Dividends declared,$183,000,0,0],[$Retained earnings, $12/31,$$$(1,475,000),0,0],[$Cash$,$$$173,000,$$$105,000,$$$105,000$