On January 1, 2018 Casey Corporation exchanged $3,251,000 cash for 100 percent of the outstanding voting stock of Kennedy Corporation. Casey plans to maintain Kennedy as a wholly owned subsidiary with separate legal status and accounting information systems At the acquisition date, Casey prepared the following fair-value allocation schedule: Fair value of Kennedy (consideration transferred) Carrying amount acquired Excess fair value $ 3,251,000 2,600,000 $ 651,000 322,000 to buildings (undervalued) to licensing agreements (overvalued) to goodwill (indefinite life) (141 000) 181 000 $ 470,000 Immediately after closing the transaction, Casey and Kennedy prepared the following postacquisition balance sheets from their separate financial records Accounts Casey Kennedy Cash Accounts receivable Inventory Investment in Kennedy Buildings (net) Licensing agreements Goodwi 493,000 $ 171,000 348,000 140,000 1,650,000 1,620,000 3,251,000 6,067,500 2,830,000 3,080,000 244,500 Total assets $ 13,326,000 6,569,000 Accounts payable Long-term debt Common stock Additional paid-in capital Retained earnings $(386,000)$(429,000) (3,940,000) (3,540,000) (1,000,000) (500,000) (3,000,000) (6,000,000) ( 1,100,000 Total 1iabilities and equities (13,326,000) $ (6,569,000)