On December 31, Pacifica, Inc, 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 50,000 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 s (1,280,e00) 875,800 (325,0ee) Retained earnings, 1/1 (325,000) 90,ee0 Dividends declared Retained earnings, 12/31 Cash 118,000 $8,000 $85,ee 750,000 1,408,00e 198,000 450,000 160,000 180,800 609,000 Property, plant, and equipment Liabilities Conmon stock (400,000) (20e,880) (475,000) earnings Total 1iabilities and equities 1 of 1 Next to search e