On January 1, 2019, Calloway Corporation exchanged $2,880,000 cash for 100 percent of the outstanding voting stock of Murray Corporation. On the acquisition date, Murray had the following balance sheet. Cash $ 109.800 Accounts Payable $ 337.500 Accounts 254,700 Long-Term Debt 2,389,500 Receivable Inventory 315,000 Common Stock 1,350,000 Buildings (net) 1,687,500 Retained Earnings 990,000 Licensing Contracts 2,700,000 Total Assets $ 5,067,000 Total Liabilities and Owners' Equity $ 5,067,000 On the acquisition date: Murray's buildings had a fair market value of $1,957,500 and a remaining useful life of 10 years; and its licensing contracts had a fair market value of $2,610,000 and were due to expire in 5 years. At December 31, 2020 Murray's accounts payable included a $76.500 current liability owed to Calloway. Calloway employs the initial value method of accounting for a subsidiary investment. The respective financial records for Calloway and Murray for the year ended December 31, 2020 are as follows: Income Statement: Calloway. Murray Sales $ (6,300,000) $ (2,700,000) Cost of Goods Sold 4,185.000 1,530,000 Interest Expense 229,500 144,000 Depreciation Expense 526,500 315,000