On January 1, 2017, Prestige Corporation acquired 100 percent of the voting stock of Stylene Corporation in exchange for $2,253,000 in cash and securities. On the acquisition date, Stylene had the following balance sheet: Cash Accounts receivable Inventory Equipment (net) 2,160,000 Common stock Trademarks $35,800 Accounts payable $1,812,300 97,500 163,000 1,030,000 Retained earnings 800,000 874,000 $3,486,300 $3,486,300 At the acquisition date, the book values of Stylene's assets and liabilities were generally equivalent to their fair values except for the following assets Remaining Useful Life Book Value Fair Value $2,160,000 $2,280,000 8 years Asset Equipment Customer lists Trademarks 186,000 4 years 1,030,000 1,097,000 indefinite During the next two years, Stylene has the following income and dividends in its own separately prepared financial reports to its parent. Net Income Dividends 2017 $273,000 $25,000 2018 266,000 45,000