On January $1,2021,$ Casey Corporation exchanged $$3,327,000$ cash for $100$ percent of the outstanding voting stock of Kennedy Corporation. Casey plans to maintain Kennedy as a wholly owned subsidiary with separate legal status and accounting information systems.

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

Fair value of Kennedy $($consideration transferred$)$ $ $3,327,000$

Carrying amount acquired $2,600,000$

Excess fair value $ $727,000$

to buildings $($undervalued$)$ $ $351,000$

to licensing agreements $($overvalued$)(104,000)247,000$

to goodwill $($indefinite life$)$ $ $480,000$

Immediately after closing the transaction, Casey and Kennedy prepared the following postacquisition balance sheets from their separate financial records $($credit balances in parentheses$).$

Accounts Casey Kennedy

Cash $ $456,000$ $ $136,500$

Accounts receivable $1,450,000321,000$

Inventory $1,335,000884,500$

Investment in Kennedy $3,327,0000$

Buildings $($net$)6,060,0002,150,000$

Licensing agreements $03,030,000$

Goodwill $259,0000$

Total assets $ $12,887,000$ $ $6,522,000$

Accounts payable $ $(377,000)$ $ $(462,000)$

Long$-$term debt $(3,510,000)(3,460,000)$

Common stock $(3,000,000)(1,000,000)$

Additional paid$-$in capital $0(500,000)$

Retained earnings $(6,000,000)(1,100,000)$

Total liabilities and equities $ $(12,887,000)$ $ $(6,522,000)$