On January 1, 2012, Cranbrook Corporation acquired 75%% of the outstanding common shares of Creston Company for a cash payment of $6,000,000. Costs associated with the acquisition amounted to $600,000. On that date, Creston's balance sheet included common shares of $4,400,000 and retained earnings of $2,200,000. The identifiable net assets of Creston were equal to their book values except that capital assets had a fair value that was $600,000 greater than their carrying value. These capital assets had a remaining life of twenty years and no significant anticipated residual value after that time. Inventories had a fair value which was $150,000 less than their book value. These inventories were all sold by the end of 2012. In addition, long-term debt had a fair value that was $170,000 greater than its carrying value. The long-term debt matures on June 30, 2020. Goodwill arising from the business combination was assessed annually for impairment. The only impairment since the acquisition date amounted to $100,000 in 2015. Following are the statements of income and retained earnings for the year ended December 31, 2015: Cranbrook Creston Corporation Company Total revenues $ 5,150,000 $ 2,000,000 Cost of goods sold 2,750,000 1,000,000 Amortization expense 970,000 350,000 Other expenses 700,000 300,000 Income tax expense 280,000 150,000 4,700,000 1,800,000 Net income 450,000 200,000 Opening retained earnings 4,800,000 2,400,000 Dividends 250,000 160,000 Ending retained earnings $ 5,000,000 $ 2,440,000 The following balances were taken from the statements of financial position as at December 31, 2015: Cranbrook Creston Corporation Company Accounts receivable $ 2,000,000 $ 265,000 875 000