On January 1, 2017, Paloma Corporation exchanged $1,710,000 cash for 90 percent of the outstanding voting stock of San Marco Company. The consideration transferred by Paloma provided a reasonable basis for assessing the total January 1, 2017, fair value of San Marco Company. At the acquisition date, San Marco reported the following owners equity amounts in its balance sheet:

Common stock $400,000

Additional paid-in capital 60,000

Retained earnings 265,000

In determining its acquisition offer, Paloma noted that the values for San Marcos recorded assets and liabilities approximated their fair values. Paloma also observed that San Marco had developed internally a customer base with an assessed fair value of $800,000 that was not reflected on San Marcos books. Paloma expected both cost and revenue synergies from the combination.

At the acquisition date, Paloma prepared the following fair-value allocation schedule:

Fair value of San Marco Company $1,900,000

Book value of San Marco Company 725,000

Excess fair value 1,175,000

to customer base (10-year remaining life) ????800,000

to goodwill $???375,000

At December 31, 2018, the two companies report the following balances:

	Paloma	San Marco
Revenues	$?(1,843,000)	$??(675,000)
Cost of goods sold	1,100,000??	322,000??
Depreciation expense	125,000??	120,000??
Amortization expense	275,000??	11,000??
Interest expense	27,500??	7,000??
Equity in income of San Marco	?????(121,500)	????????0??
Net income	$????(437,000)	$??(215,000)
Retained earnings, 1/1	$?(2,625,000)	$??(395,000)
Net income	(437,000)	(215,000)
Dividends declared	?????350,000??	?????25,000??
Retained earnings, 12/31	$?(2,712,000)	$??(585,000)
Current assets	$???1,204,000??	$????430,000??
Investment in San Marco	1,854,000??	0??
Buildings and equipment	931,000??	863,000??
Copyrights	?????950,000??	????107,000??
Total assets	$???4,939,000??	$??1,400,000??
Accounts payable	$????(485,000)	$??(200,000)
Notes payable	(542,000)	(155,000)
Common stock	(900,000)	(400,000)
Additional paid-in capital	(300,000)	(60,000)
Retained earnings, 12/31	??(2,712,000)	????(585,000)
Total liabilities and equities	$?(4,939,000)	$(1,400,000)

At year-end, there were no intra-entity receivables or payables.

*Determine the consolidated balances for this business combination as of December 31, 2018.