On January 1, 2016, Pride Corporation purchased 90 percent of the outstanding voting shares of Star, Inc. for $493,000 cash. The acquisition-date fair value of the noncontrolling interest was $54,800. At January 1, 2016, Star's net assets had a total carrying amount of $383,600. Equipment (eight-year remaining life) was undervalued on Star's financial records by $52,800. Any remaining excess fair value over book value was attributed to a customer list developed by Star (four-year remaining life), but not recorded on its books. Star recorded net income of $46,200 in 2016 and $52,800 in 2017. Each year since the acquisition, Star has declared a $13,200 dividend. At January 1, 2018, Pride's retained earnings show a $165,000 balance.

Selected account balances for the two companies from their separate operations were as follows: