On January 1, 2012, Picante Corporation acquired 100 percent of the outstanding voting stock of Salsa Corporation for $1,985,000 cash. On the acquisition date, Salsa had the following balance sheet:

Cash	$	50,000		Accounts payable	$	169,000
Accounts receivable		119,000		Long-term debt		976,000
Land		789,000		Common stock		1,074,000
Equipment (net)		1,962,000		Retained earnings		701,000
	$	2,920,000			$	2,920,000

At the acquisition date, the following allocation was prepared:

Fair value of consideration transferred			$	1,985,000
Book value acquired				1,775,000
Excess fair value over book value				210,000
To in-process research and development	$	65,750
To equipment (8-year remaining life)		122,400		188,150
To goodwill (indefinite life)			$	21,850

Although at acquisition date Picante had expected $65,750 in future benefits from Salsa