On January 1, 2019, Parflex Corporation exchanged $344,000 cash for 90 percent of Eagle Corporation's outstanding voting stock. Eagle's acquisition date balance sheet follows: Cash and receivables Inventory Property and equipment (net) $ 15,000 35,000 350,000 Liabilities Common stock Retained earnings 76,000 150,000 174,000 $ 400,000 $ 400,000 On January 1, 2019, Parflex prepared the following fair-value allocation schedule: Consideration transferred by Parflex 10% noncontrolling interest fair value Fair value of Eagle Book value of Eagle Excess fair over book value to equipment (undervalued, remaining life of 9 years) to goodwill (indefinite life) $344,000 36,000 380,000 324,000 56,000 18,000 $ 38,000 The companies' financial statements for the year ending December 31, 2021, follow: Sales Cost of goods sold Depreciation expense Equity in Eagle's earnings Separate company net income Retained earnings 1/1 Net income Dividends declared Retained earnings 12/31 Cash and receivables Inventory Investment in Eagle Property and equipment (net) Total assets Liabilities Common stock-Parflex Common stock-Eagle Retained earnings 12/31 Total liabilities and owners' equity Parflex $ (862,000) 515,000 191,200 (79,200) $ (235,000) Eagle $ (366,000) 209,000 67,000 0 $ (90,000) $ (500,000) $ (278,000) (235,000) 130,000 (90,000) 27,000 $ (605,000) $ (341,000) $ 135,000 255,000 $ 82,000 136,000 488,900 $ 1,842,900 964,000 $ (722,900) (515,000) 0 (605,000) $ (1,842,900) 0 328,000 $ 546,000 $ (55,000) 0 (150,000) (341,000) $ (546,000) At year-end, there were no intra-entity receivables or payables.