On January $1,2020,$ Paloma Corporation exchanged $$1,710,000$ cash for $90$ percent of the outstanding voting stock of San Marco Company. The consideration transferred by Paloma provided a reasonable basis for assessing the total January $1,2023,$ fair value of San Marco Company. At the acquisition date, San Marco reported the following owners$$ equity amounts in its balance sheet:

Common stock $$400,000$

Additional paid$-$in capital $60,000$

Retained earnings $265,000$

In determining its acquisition offer, Paloma noted that the values for San marco$$s recorded assets and liabilities approximated their fair values. Paloma also observed that San marco had developed software internally with an assessed fair value of $$800,000$ that was not reflected on San Marco$$s books. Paloma expected both cost and revenue synergies from the combination.

At the acquisition date, Paloma prepared the following fair$-$value allocation schedule:

Fair value of San Marco Company $$1,900,000$

Book value of San Marco Company $725,000$

Excess fair value $1,175,000$

to customer base $(10-$year remaining life$)800,000$

to goodwill $$375,000$

At December $31,2021,$ the two companies report the following balances:

Paloma, San Marco

Revenues $$(1,843,000)$ $$(675,000)$

Cost of goods sold $1,100,000322,000$

Depreciation expense $125,000120,000$

Amortization expense $275,00011,000$

Interest expense $27,5007,000$

Equity in income of Stein $(121,500)0$

Net income $$(437,000)$ $$(215,000)$

Retained earnings, $1/1$ $$(2,625,000)$ $$(395,000)$

Net income $(437,000)(215,000)$

Dividends declared $350,00025,000$

Retained earnings, $12/31$ $$(2,712,000)$ $$(585,000)$

Current assets $$1,204,000$ $$430,000$

Investment in Stein $1,854,0000$

Buildings and equipment $931,000863,000$

Copyrights $950,000107,000$

Total assets $$4,939,000$ $$1,400,000$

Accounts payable $$(485,000)$ $$(200,000)$

Notes payable $(542,000)(155,000)$

Common stock $(900,000)(400,000)$

Additional paid$-$in capital $(300,000)(60,000)$

Retained earnings, $12/31(2,712,000)(585,000)$

Total liabilities and equities $$(4,939,000)$ $$(1,400,000)$

At year$-$end, there were no intra$-$entity receivables or payables.

A$)$ Determine the consolidated balances for this business combination as of December $31,2021$