On January 1, 2018, Morey, Inc., exchanged $182,250 for 25 percent of Amsterdam Corporation. Morey appropriately applied the equity method to this investment. At January 1, the book values of Amsterdams assets and liabilities approximated their fair values. On June 30, 2018, Morey paid $563,500 for an additional 70 percent of Amsterdam, thus increasing its overall ownership to 95 percent. The price paid for the 70 percent acquisition was proportionate to Amsterdams total fair value. At June 30, the carrying amounts of Amsterdams assets and liabilities approximated their fair values. Any remaining excess fair value was attributed to goodwill. Amsterdam reports the following amounts at December 31, 2018 (credit balances shown in parentheses): Revenues $ (279,000 ) Expenses 201,000 Retained earnings, January 1 (193,800 ) Dividends declared, October 1 20,000 Common stock (500,000 ) Amsterdams revenue and expenses were distributed evenly throughout the year and no changes in Amsterdams stock have occurred.