On January 1, 2017, Mona, Inc, acquired 90 percent of Lisa Company's common stock as well as 70 percent of its preferred shares. Mona paid $77,000 in cash for the preferred stock, with a call value of 110 percent of the $62 per share par value. The remaining 30 percent of the preferred shares traded at a $46,000 fair value. Mona paid $589,500 for the common stock. At the acquisition date, the noncontrolling interest in the common stock had a fair value of S65,500. The excess fair value over Lisa's book value was attributed to franchise contracts of $52,000 This intangible asset is being amortized over a 40-year period. Lisa pays all preferred stock dividends (a total of $20,000 per year) on an annual basis. During 2017, Lisa's book value increased by $122,000 On January 2, 2017, Mona acquired one-half of Lisa's outstanding bonds payable to reduce the business combination's debt position. Lisa's bonds had a face value of $112,000 and paid cash interest of 6 percent per year. These bonds had been issued to the public to yield 10 percent. Interest is paid each December 31. On January 2, 2017, these bonds had a total S91,000 carrying amount. Mona paid $61,000, indicating an effective interest rate of 5 percent. On January 3, 2017, Mona sold Lisa fixed assets that had originally cost $112,000 but had accumulated depreciation of $80,000 when transferred. The transfer was made at a price of S144,000. These assets were estimated to have a remaining useful life of 10 years The individual financial statements for these two companies for the year ending December 31, 2018, are as follows: Mona, Inc. Lisa Company (224,000) 132,000 Sales and other revenues Expenses Dividend income-Lisa common stock Dividend income Lisa preferred stock $ (524,000) 232,000 (20,000) 14000 $ (326,000) $ (92,000) $ (712,000) (524,000) 22,000 Net income Retained Net income (above) Dividends declared-common stock Dividends declared-prefed stock earnings, 1/1/18 (326,000) 104,800 20.000 $ (574,000) $ 512,000 Retained earnings, 12/31/18 Current assets Investment in Lisa-common stoclk Investment in Lisa-preferred stock Investment in Lisa-bonds Fixed assets Accumulated depreciation $ (933,200) $142,419 589,500 77,000 63,781 1,112,000 812,000 $1,672,700 $ (427,500) Total assets $ 1,112,000 Accounts payable Bonds payable Discount on bonds payable Common stock Preferred stock Retained earnings, 12/31/18 S (109,780) (112,000) 7.780 (212,000) (112,000) (574,000) $ (1,672,700) $ (1,112,000) (312,000) Total liabilities and equities