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 identiable 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 signicant 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, longterm 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 ' _ m__W Cost of goods sold 2,750,000 1,000,000 ' 'Amorti'eati'on expense " " 970,000 ' " ' 350,000 ' Other expenses 700,000 300,000 Income tax expense " 200,000 .. ' 150,000 ' ' W W Net income T000 T000 WWW Dividends 250,000 160,000 Ending retainedearnings I We W The following balances were taken from the statements of nancial position as at December 31, 2015