On January 1, 2014, Portland Company acquired all of Salem Company's voting stock for $10,000,000 in cash. Some of Salem's assets and liabilities at the date of purchase had fair values that differed from reported values, as follows: Salem's total shareholders' equity at january 1,2014 , was $3,000,000. It is now December 31,2017 (four years later). Salem's retained earnings reflect the accumulation of net income less dividends; there have been no other changes in its retained earnings. Salem does not report any other comprehensive income. Cumulative goodwill impairment to the beginning of 2017 is $750,000. Goodwill impairment for 2017 is $250,000. Portland uses the complete equity method to account for its investment. The December 31,2017 , trial balance for Salem appears below. On the 2017 consolidation working paper, eliminating entry (0) increases consolidated operating expenses by